Dazheng Group says still committed to acquire Hollysys for $29.50 a share

Despite multiple rejections and even after its most recent increased offer, Dazheng Group reiterated its commitment to a $29.50 per share offer for Hollysys Automation (NASDAQ:HOLI).

The buyer consortium led by Dazheng said it will still be committed its $29.50 bid even if shareholders reject Hollysys (HOLI) planned $26.50 per share sale to Ascendent Capital at a vote on Feb. 8, the consortium said in a statement on Saturday.

“The Consortium’s offer has enhanced closing certainty relative to the Ascendent offer and is backed by financing above industry standards,” the buyer group said in the statement. “The Consortium has secured a debt commitment letter for US$1.05 billion from a reputable PRC-headquartered bank’s Hong Kong branch, which is the same bank that issued a debt commitment letter to Ascendent Capital.”

The consortium’s latest statement comes after Hollysys (HOLI) on Monday rejected the buyer group’s increased offer, claiming that its special committee doesn’t have confidence in Dazheng’s equity financing or its ability to close a transaction,

The upcoming shareholder vote this week comes as influential proxy firms ISS and Glass Lewis earlier this month recommended that Hollysys (HOLI) holders vote to reject the Ascendent Capital deal.