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Proxy adviser, Institutional Shareholder Services, issues a strong recommendation for shareholders of Hollysys Automation Technologies (NASDAQ:HOLI) to turn down Ascendent Capital Partners’ $1.7 billion buyout proposal.
ISS criticized the hasty nature of the Hollysys (HOLI) sales process, suggesting that there was not enough emphasis placed on maximizing the selling price, as per a Bloomberg report published over the weekend.
Notably, ISS’s stance adds to a recent vote of disapproval from another significant proxy adviser, Glass Lewis, who also advocated against the proposed deal. Shareholders of Hollysys (HOLI) are slated to cast their vote on the $26.50 per share offer from Ascendent Capital Partners on February 8.
Recent events have unfolded following Hollysys (HOLI) declaring at the end of December that it had not received a superior bid to the $26.50 per share acquisition proposed by Ascendent Capital Partners, even after Dazheng Group Acquisition publicly revealed an offer valued at $29 per share, equivalent to $1.8 billion.
“Given the questionable effort to maximize price, the unreasonably high standard to which Ascendent’s main competitor has been held, and the inexplicably truncated process, votes against the proposed transaction are warranted,” ISS mentioned in the report referenced by Bloomberg.
In a surprising turn of events, Hollysys (HOLI) disclosed earlier this month that it received a bid of $30 per share on December 22 from a consortium comprising three investors.
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