Hollysys Automation's stock rises toward 2-year high after engaging with Recco, Dazheng regarding $25 buyout bid

Shares of Hollysys Automation Technologies Ltd. (HOLI) rose 0.8% toward a two-year high in premarket trading Monday, after the China-based provider of automation control systems said it formed a special committee to conduct a formal sale process. The company said the committee will engage immediately with Recco Control Technology and Dazheng Group Investment Holdings Co. regarding their unsolicited bid to buy Hollysys for $25 a share, which is 30% above Friday's closing price of $19.84.. With 62.02 million shares outstanding, the buyout bid would value the company at $1.55 billion. The stock has climbed 12.8% over the past three months through Friday, while the S&P 500 has lost 3.7%.

-Tomi Kilgore

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10-02-23 0612ET

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