Hollysys Automation Technologies Ltd. (HOLI) shares jumped 17.42% in after-hours on Monday, August 2, 2021, and closed at $18.20 per share. In the regular trading session, HOLI’s stock gained 2.79%. HOLI shares have risen 28.10% over the last 12 months, and they have moved up 2.65% in the past week. Over the past three months, the stock has gained 13.89%, while over the past six months, it has lost 8.77%.
Let’s have a look at its recent news and developments.
HOLI Board evaluating the acquisition offers
On Aug. 2, 2021, HollySys Automation Technologies Ltd. (HOLI) announced that the Company’s Board of Directors is in the process of evaluating a non-binding offer from Superior Emerald (Cayman) Limited which was received on July 20, 2021, to acquire all of the outstanding ordinary shares of the Company for US$23.00 per share in cash. This follows an offer from CPE Funds Management Limited, to acquire all of the outstanding ordinary shares of the Company for $17.10 per share in cash which was publicly disclosed by the CPE Consortium and to which the Company responded earlier.
Deadline extension for HOLI shareholders
On July 22, 2021, the buyer consortium extended the deadline to on or before August 20, 2021, by which shareholders of Hollysys Automation Technologies Ltd. (HOLI) may submit consents to the Consortium’s proposed resolutions concerning its proposed acquisition of all outstanding ordinary shares of the Company not already owned by the Consortium at $17.10 per share in cash.
HOLI refused the Consortium offer
On July 15, 2021, HollySys Automation Technologies Ltd (HOLI) replied to the false claims put forth by a consortium comprised of Mr Baiqing Shao, Ace Lead Profits Limited and CPE Fund Management Limited regarding the Company’s past performance.
The Board of Directors wrote a letter to its shareholders and updated them about the Consortium offer, and the misrepresentations they have made. The Board also rejected the Consortium’s bid of US$17.10 per share which greatly undervalues the Company.
HOLI Recent business update
On July 6, 2021, Hollysys Automation Technologies Ltd announced its business update and revised financial outlook.
The revised financial outlook for FY 2021
- The company is expecting revenue in the range of approximately $560 million to $595 million in FY2021.
- The industrial automation business of the company is expected to increase by 30% year-over-year.
Business update
- The Company won a 2*660MW integration contract with a power company in Q4 2021.
- Hollysys will provide DCS, Safety Instrumented System (SIS), Gas Detection System (GDS), Fusion Digital Simulation (FDS), Asset Management System (AMS), OTS, Manufacturing Execution System (MES), fire and gas probes and low-temperature detection instruments in a benchmark project of a core state-owned backbone enterprise in the petrochemical segment.
- The Company signed a procurement contract for smart I/O system upgrade a new material workshop in Shandong, in terms of new product promotion.
- The Company signed the first outdoor monitoring and intelligent diagnosis engineering system for track circuits, in the high-speed rail business in Q4 2021.
Conclusion
The counter-offer of US$23.00 per share in cash for the HOLI acquisition is the reason behind its recent gains on Monday and we expect it to perform well in the coming days as well.
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