(Reuters) – Hollysys Automation Technologies, a China-based maker of automation and control systems, said on Monday it had formed a special committee to review a $1.55 billion offer from a consortium and start a sale process.
In August, a consortium led by Recco Control Technology and Dazheng Group Investment Holdings made an all-cash offer of $25 per share to buy the company.
The special committee will discuss the next steps with Recco Control and Dazheng Group (Hong Kong) in response to the offer to acquire the company, while expediting the process to seek “additional serious and compelling offers,” Hollysys said in a statement.
Separately, Hollysys said its board had engaged with shareholders who own 32.2% of the company following their push for a special meeting in August amid mounting frustration with the management for not starting a sales process.
The 30-year-old company, valued at $1.2 billion, operates in four sectors: industrial automation, transportation automation, medical and health care, and energy and environmental protection. The company is listed in the United States, incorporated in the Cayman Islands and headquartered in China.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D’Silva)
