In the premarket trading session, Hollysys Automation Technologies Ltd. (HOLI) stock had ramped up in the last trading session at a trade price of $16.19 which led to an increase of 13.93%. HOLI stock had previously closed the session at $14.21which was a gain of0.35% on Tuesday. The HOLI stock volume traded 0.13 million shares and in the past 50 days, the average trade volume has been 0.53 million. In the past year up to date, HOLI stock have risen by 7.81% and in the past week, HOLI stock jumped up by 2.45%.
What you need to know about HollysysAutomationTechnologies Ltd.
Hollysys Automation Technologies Ltd. is an electrical equipment and parts company that specifically focuses on the provision of automation solutions. The company has set up its operations in the People’s Republic of China, India, Southeast Asia, and the Middle East. The company has a portfolio of numerous industrial automation systems which are hardware centric products, actuators, software related logic control systems that are customizable and programmable. Hollysys Automation also provides software packages that comprise of real time management info system. These automation systems range from batch application package and operator training system to expansive proprietary nuclear power non-safety automation and control system. The company has clientele base of multiple industries which include railway, nuclear power, electronic, mechanical, and subway industries. The company was previously known as HLS Systems International Ltd until july 2009. Hollysys Automation was originated in 1993 and is based in Beijing, China.
Considered acquisition by Buyer Consortium for outstanding shares at price of $17.10 per share
The Buyer Consortium has planned and proposed to acquire Hollysys Automation Corporation Inc. The consortium consists of Mr. Shao Baiqing, Ace lead Profits Limited and CPE Funds Management Limited. The consortium has planned to provide shareholder who are large beneficial owners with a letter and a WHITE consent card. This is being transferred to the shareholders through banks and brokers. Furthermore, the consortium is showing guidance to shareholders who are registered on how to provide consent for the acquisition on the dedicated website.
The details of the proposal suggest to the shareholders in the letter that the consortium wishes to gain all of the common outstanding and ordinary shares of the Hollysys Automation other than the ones already purchase by the consortium for the price of $17.10 per share. The amount will be transferred in cash. This offer resides a 37% premium on the share price as compared to 4th December 2020’s closing price.To proceed with the acquisition, the shareholders of the company, at least having 50% and more ownership will have to agree for this acquisition. This acquisition will then be mediated through BVI Business Companies Act 2004 which can override board’s power to invoke rights pursuant to HOLI stock’s existing “poison pill” for the acquired proposition.
