HOLI - Hollysys Automation jumps 23% on report about $29/share sale to consortium

Hollysys Automation ( NASDAQ: HOLI ) surged 23% in premarket after a report that the automation and control maker is near an agreement to be sold a consortium in deal valued at $1.8 billion, or $29/share.

Hollysys's ( HOLI ) management team lead by CEO Wang Changli has won the endorsement for the purchase from the municipal government of Beijing, according to a Reuters report. The consortium has teamed up with a Beijing-based firm for a possible transaction.

The consortium has also held talks with banks to finance the transaction and is close to secure loans worth at least $1 billion from Chinese lenders, led by ICBC, according to Reuters. The consortium is looking to add some other private equity firms into the deal including Warburg Pincus and Chinese venture capital firm Legend Capital.

The latest on a potential Hollysys  ( HOLI ) take private comes after a report last month that a buyer consortium led by Recco Control Technology and Dazheng Investment reaffirmed its proposed acquisition of HOLI for $25/share.

Wang is part of a consortium, which originally offered to buy the company for $23/share last summer. Wang returned as CEO of Hollysys ( HOLI ) back in early January.

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