Hollysys Automation (NASDAQ:HOLI) stock is climbing higher on Friday following reports that the company’s management intends to take it private.
According to recent reports, leaders at the company are working out a plan to take Hollysys Automation off the public market. This would reportedly value the Chinese automation and IT solutions company at $1.8 billion.
Insiders claim that Hollysys Automation’s management is already speaking with banks to secure financing for the deal. Currently, they have reached agreements for at least a $1 billion loan to take the company private.
Reports also claim that Hollysys’ executives are working with the government of Beijing on the deal. This allegedly has company leaders partnering with a Beijing-based state firm to assist in taking HOLI private.
There’s no official word from Hollysys regarding the plans to go private. None of the groups involved in the reported plan to take it private have commented on the matter yet, per Reuters.
News of this plan is exciting investors with heavy trading today. More than 5 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 293,000 shares.
HOLI stock is up 18% as of Friday morning. The stock is also up more than 35% since the start of the year.
Investors looking for more of the most recent stock market news are in the right place!
InvestorPlace is home to all of the latest stock coverage traders need to know about for Friday! A few examples include what has shares of BioAffinity Technologies (NASDAQ:BIAF), Starbucks (NASDAQ:SBUX) and Cenntro Electric (NASDAQ:CENN) stock on the move today. You can read up on all of that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
