UPDATE 1-Dazheng-led consortium sets out financing for Hollysys bid
(Updates with details from statement in paragraphs 1-4, adds background in paragraph 5-6)
Feb 3 (Reuters) - A consortium led by China's Dazheng Group Acquisition has set out financing for its $29.50-per-share bid for Hollysys Automation Technologies as it battles a rival offer from Hong Kong-based private equity firm Ascendent Capital.
In a statement on Saturday, the Dazheng consortium - which also includes TFI Asset Management - said it had secured a debt commitment letter for $1.5 billion from an unnamed China headquartered bank's Hong Kong branch.
It had also secured equity commitments totaling $800 million from Dazheng Group and TFI Asset Management, it said.
The consortium has urged shareholders of Hollysys, an automation control system provider, to vote against Ascendent Capital's offer ahead of a shareholders' meeting in the coming week, the statement added.
Ascendent had agreed last year that it will acquire outstanding Hollysys shares at $26.5 each in a deal valued at around $1.66 billion.
Last month, Hollysys said a special company committee - set up to consider the offers - had concerns over the equity financing by Dazheng and its ability to close a transaction, citing changes in the equity consortium structure and Dazheng's proposed yuan-denominated escrow account. (Reporting by Gursimran Kaur in Bengaluru; Editing by David Holmes)
