(Yicai Global) Sept. 13 -- Longsheng Group’s stock price soared after the Chinese chemicals maker joined the bidding to take private Nasdaq-listed Hollysys Automation Technologies, driving up the estimated cost of a deal to as much as CNY8 billion (USD1.24 billion).

Longsheng Group [SHA:600352] closed up 6.4 percent at CNY15.17 (USD2.35) today, after earlier jumping as much as 8.7 percent.

Zhejiang province-based Longsheng has set up a special purpose vehicle with Loyal Valley Capital and other parties to offer USD24 a share for Hollysys Automation, it said in a statement late yesterday. Beijing-based Hollysys has already received two offers: Superior Emerald proposed USD23 a share in August, while another consortium previously offered USD17.10.

Hollysys Automation went public on the Nasdaq in August 2008. As of the close of trading on Sept. 10, its shares [NASDAQ:HOLI] were priced at USD19.48 each, valuing the business at USD1.19 billion. The firm provides automation and information technology solutions, with its businesses focused on industrial and traffic automation and healthcare.

The bid is an opportunity for Longsheng to strengthen its partnership with Hollysys both in terms of business and technology, and speed up development of its industrial automation, it said.

Longsheng, which specializes in chemicals, auto components, real estate and financial investment, has not yet determined the SPV’s shareholding split or its collaborative model. But all details will be decided before submitting a final bid, the firm added.

Editor: Futura Costaglione