Deals

Glass Lewis Tells Hollysys Shareholders to Reject $1.7 Billion Offer

  • Proxy firm says Hollysys could potentially fetch greater value
  • Shareholders are scheduled to vote on Ascendent deal on Feb. 8
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Glass, Lewis & Co. recommended shareholders of Beijing-based Hollysys Automation Technologies Ltd. to vote against a $1.66 billion takeover proposal by private equity firm Ascendent Capital Partners Ltd.

Hollysys could fetch “potentially materially greater value” from other bidders, so shareholders should reject the offer from Hong Kong-based Ascendent, Glass Lewis said in a Jan. 25 report seen by Bloomberg News. In December, Hollysys agreedBloomberg Terminal to be acquired by Ascendent, which already owns 13.7% of the US-listed company, for $26.50 a share in cash. Its board unanimously endorsed the offer.