Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hollysys Automation Technologies / Event-Driven

<ul>
<li>On the 13 December, Bloomberg reported that the Recco-led group consortium was weighing a revised Offer to be “significantly higher than the $26.50-a-share cash offer from Ascendent Capital”</li>
<li>On the 24 December, a buyer consortium led by Dazheng Group announced an all-cash proposal of US$29.00/share, a 9.4% premium to Ascendent's Offer. "Credible" financing is in place.</li>
<li>"The Consortium stands ready to engage with the Board".  The Board should engage. The one curious aspect of this latest Offer is the apparent absence of Recco's involvement. </li>
</ul>


On the 13 December, Bloomberg reported that the Recco-led group consortium was weighing a revised Offer to be “significantly higher than the $26.50-a-share cash offer from Ascendent Capital”
On the 24 December, a buyer consortium led by Dazheng Group announced an all-cash proposal of US$29.00/share, a 9.4% premium to Ascendent's Offer. "Credible" financing is in place.
"The Consortium stands ready to engage with the Board".  The Board should engage. The one curious aspect of this latest Offer is the apparent absence of Recco's involvement. 


Hollysys (HOLI US): Dazheng Consortium "Trumps" Ascendent's Bid

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys Automation Technologies (HOLI US)</a>'s board persistent stonewalling was effectively terminated after the its court injunction was dismissed last month. An SGM will now take place sometime next month.  </li>
<li>A firm merger agreement was expected this month, and Hollysys <a href="https://hollysys.investorroom.com/2023-12-11-Hollysys-to-be-Acquired-by-Ascendent-Capital-Partners-for-US-26-50-in-Cash-Per-Share" target="_blank" rel="noopener">announced</a> yesterday Ascendent Capital has emerged as the preferred suitor with a (revised) US$26.50/share Offer. </li>
<li>This looks to be (finally) all stitched up. Trading wide-ish to terms. Get involved. </li>
</ul>



Hollysys Automation Technologies (HOLI US)'s board persistent stonewalling was effectively terminated after the its court injunction was dismissed last month. An SGM will now take place sometime next month.  
A firm merger agreement was expected this month, and Hollysys announced yesterday Ascendent Capital has emerged as the preferred suitor with a (revised) US$26.50/share Offer. 
This looks to be (finally) all stitched up. Trading wide-ish to terms. Get involved. 


Hollysys Gives Ascendent Capital The Nod. "Agnostic" Shareholders Will Approve

<ul>
<li>A fortnight after co-COOs pitched a US$25/share indicative Offer for <a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys (HOLI US)</a>, Ascendent Capital, holding 13.7%, tabled a US$26/share Offer. The Recco/Dazheng consortium offered US$26.50 a week later.</li>
<li>There is currently a dispute over the ownership and control of Ace Lead's shares in Hollysys, which was subject to an injunction hearing in the Hong Kong High Court.</li>
<li>That hearing took place today. So I went along to hear first-hand the key arguments from both sides. </li>
</ul>


A fortnight after co-COOs pitched a US$25/share indicative Offer for Hollysys (HOLI US), Ascendent Capital, holding 13.7%, tabled a US$26/share Offer. The Recco/Dazheng consortium offered US$26.50 a week later.
There is currently a dispute over the ownership and control of Ace Lead's shares in Hollysys, which was subject to an injunction hearing in the Hong Kong High Court.
That hearing took place today. So I went along to hear first-hand the key arguments from both sides. 


<ul>
<li>Talk about your never-ending story. I count at least seven non-binding Offers for <a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener"> Hollysys Automation Technologies (HOLI US)</a> since December 2020, three of which are still on the table.</li>
<li>The latest, at US$26/share, was pitched earlier this week from Ascendent Capital Partners; who along with Changli Wang, Hollysys' founder, previously made an US$23/share Offer in August 2021.</li>
<li>However, all these Offers are largely moot until we get closure at the court injunction hearing. If that occurs. Separately, I had a solid discussion with Hollysys' IR. </li>
</ul>


Talk about your never-ending story. I count at least seven non-binding Offers for  Hollysys Automation Technologies (HOLI US) since December 2020, three of which are still on the table.
The latest, at US$26/share, was pitched earlier this week from Ascendent Capital Partners; who along with Changli Wang, Hollysys' founder, previously made an US$23/share Offer in August 2021.
However, all these Offers are largely moot until we get closure at the court injunction hearing. If that occurs. Separately, I had a solid discussion with Hollysys' IR. 


Hollysys: Court Injunction Hearing Is Key

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys (HOLI US)</a>, a leading automation control system solutions provider in China, has been subject to at least six indicative Offers since December 2020, ranging from US$15.47/share to $US$25/share. </li>
<li>Yue Xu and Lei Fang, the co-chief operating officers of Hollysys, who previously tabled a NBIO of <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=116095743&amp;type=PDF&amp;symbol=HOLI&amp;companyName=Hollysys+Automation+Technologies+Ltd.&amp;formType=6-K&amp;dateFiled=2021-08-24&amp;CK=1357450" target="_blank" rel="noopener">US$23.00/share in August 2021</a>, have now pitched a <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=317816928&amp;type=PDF&amp;symbol=HOLI&amp;cdn=2e4afefb17cdc67f8f50561ac5e51bd3&amp;companyName=Hollysys+Automation+Technologies+Ltd.&amp;formType=6-K&amp;dateFiled=2023-10-24" target="_blank" rel="noopener">US$25/share proposal</a>.</li>
<li>What is different this time? &gt;32% of the share registry has banded together to demand changes. That’s dramatically different vs previous Offers.</li>
</ul>



Hollysys (HOLI US), a leading automation control system solutions provider in China, has been subject to at least six indicative Offers since December 2020, ranging from US$15.47/share to $US$25/share. 
Yue Xu and Lei Fang, the co-chief operating officers of Hollysys, who previously tabled a NBIO of US$23.00/share in August 2021, have now pitched a US$25/share proposal.
What is different this time? &gt;32% of the share registry has banded together to demand changes. That’s dramatically different vs previous Offers.


China

Zhejiang Longsheng Group Co., Ltd. manufactures a variety of dyes including high intensity and rapid-dying Lonsperse Dye. The Company sells its products domestically and exports worldwide.

Zhejiang Longsheng Group Co., (600352 CH)

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Zhejiang Longsheng Group Co., (600352 CH)

Hollysys (HOLI US): Dazheng Consortium "Trumps" Ascendent's Bid

Your current, possible upside to Dazheng's Offer is 7.9%; and your downside is just 1.3%. I'd still get involved here, and on any weakness.

David Blennerhassett

Hollysys Gives Ascendent Capital The Nod. "Agnostic" Shareholders Will Approve

Reportedly (Bloomberg), the Recco-led group (including Dazheng Group Investment Holdings), has financing lined up and is weighing a revised Offer...

David Blennerhassett

Hollysys (HOLI US): In Court Today ...

Game on! Hollysys has confirmed an SGM will be held the week commencing 22 January 2024. The record date to be eligible to vote is the 27 November....

David Blennerhassett

Hollysys: Court Injunction Hearing Is Key

Recco or Ascendant? Ascendant's Offer (with a bump?) could easily get >50% of shares out, and spill the board. Alternatively, IF Ace Lead's stake...

David Blennerhassett

What To Make Of Hollysys' Latest Offer

The consistently poor transparency on NBIOs; the various Offers that have fallen by the wayside (without any basis for doing so), plus an ongoing...

David Blennerhassett

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