Hollysys Automation Technologies receives a non-binding acquisition offer from its own management team and evaluates potential bidders. Positive market response indicates investor confidence.
Hollysys Automation Technologies has recently received an acquisition offer from its own management team. Co-chief operating officers, Lei Fang and Yue Xu, have proposed a non-binding offer to buy all outstanding shares of the company. The offer suggests a cash buyout of $25 per share as part of a take-private transaction.
Earlier this month, Hollysys began a formal sale process after receiving a non-binding offer of $25 per share from Recco Control Technology and Dazheng Group. However, Hollysys has not made any decisions regarding these buyout offers or any others. The sale process is being overseen by a special committee of independent directors who will continue to engage with potential bidders.
Hollysys anticipates that it will take several more weeks to establish a short-list of prospective bidders. During this time, the company will carefully evaluate all offers to determine the best course of action. It is crucial for Hollysys to proceed with caution and ensure that any potential acquisition aligns with the company's goals and objectives.
Following this news, Hollysys shares experienced a 5.94% gain, reaching $19.99 in Tuesday morning trading on the Nasdaq. This positive market response indicates investor confidence in the company's future prospects.
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