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Influential proxy advisor Institutional Shareholder Services recommended Hollysys Automation Technologies (NASDAQ:HOLI) shareholders are expected to reject Ascendent Capital Partners’ $1.7 billion offer.
Hollysys’ (HOLI) sale process was “relatively short” and appears to have “included minimal effort to maximize price,” ISS said in its recommendation, according to to a Bloomberg report on Saturday.
ISS is the second major proxy advisor to rule against the deal in recent days after Glass Lewis said holders of Hollysys (HOLI) should vote against the deal. Hollysys (HOLI) holders will vote on Ascendent Capital Partners’ $26.50 stock deal on February 8.
The recommendation comes after Hollysys (HOLI) said in late December that it had not received any offers believed to be higher than the $26.50 per share sale to Ascendent Capital, even after Dazheng Group Acquisition revealed it had made an offer of value of $29 per share, or $1.8 billion.
“Given the questionable effort to maximize price, the unreasonably high standard to which Ascendent’s primary competitor was held, and the inexplicably truncated process, votes against the proposed transaction are justified,” ISS said in the report, according to Bloomberg .
Hollysys (HOLI) earlier this month received an offer of $30 per share on December 22 from a consortium of three investors.