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Update 2:30pm: Adds additional reporting from Dealreporter.
Hollysys Automation (NASDAQ:HOLI) rose 1% after buyer Superior Technologies Holding said it entered into a financing agreement that will help fund the $1.66 billion acquisition.
Superior entered into a facility agreement and will be lent $1.055 billion to be used to fund, in-part, the consideration for the Hollysys (HOLI) deal, according to a 13D filing on Friday.
The latest update comes after Hollysys (HOLI) soared 18% on July 1 after buyer Ascendent Capital Partners disclosed that its affiliate Superior Technologies Holding received all Chinese approvals for the $1.66 billion deal.
The stock move on Friday also comes after a Dealreporter item on Friday that Ascendent is working to close the Hollysys (HOLI) deal in the coming weeks. Routine paperwork needs to be done still, which may take a month or so, according to the publication, which cited a source familiar with the matter.
Ascendent has some routing work to get through with China’s National Development and Reform Commission (NDRC) to physically get the paper approval from the regulator, according to the report.
In December 2023, the Beijing-based company announced a going private deal under which it would be acquired by private investment firm Ascendent in an all-cash transaction. Hong Kong-based Ascendent is acquiring all outstanding shares of Hollysys that it does not currently own for $26.50 per share in cash.