Shares of Chinese automation solutions company Hollysys Automation Technologies (NASDAQ: HOLI) are rallying premarket after the company received a takeover proposal from a consortium that includes its co-founder and former CEO Baiqing Shao.
The consortium, which also includes Chinese private equity firm CPE Funds Management, has made an offer of $15.47 per share in cash, representing a 24% premium on the stocks December 4th closing price.
In its email to the Hollysys board of directors, the consortium said it already has a stake of 7.14% in the business, while Baiqing Shao is the third-largest shareholder in the company.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
“The Consortium strongly believes that a sale of the Company will avail its shareholders of a direct path to realizing immediate liquidity and a highly compelling premium for their shares, with far greater certainty than if the Company were to remain a publicly-traded company during a time of persisting uncertain economic and U.S. regulatory environment,” read part of the email.
Shares of Hollysys are up 15.51% at $14.45 so far on Tuesday, ahead of the US opening bell.
PEOPLE WHO READ THIS ALSO VIEWED: