Buyer consortium affirms $25 per share offer to acquire Hollysys

Buyer consortium led by Recco Control Technology Pte. Ltd. and Dazheng Group Investment Holdings Company Limited announced that the consortium reaffirmed its non-binding indicative all-cash offer of $25 per share, or approximately $1.55B, to acquire Hollysys Automation Technologies Ltd. The consortium reaffirmed its offer in a new letter sent to the Board on August 24, 2023. Members of the consortium also include TFI Asset Management Limited, and Great Wall Capital Co., Ltd, who have entered into a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group in connection with the proposed acquisition of Hollysys. The offer represents a premium of 34% over Hollysys’ closing share price of $18.66 on August 23, 2023. “We are confident that the premium of our offer is extremely attractive to Hollysys shareholders and the proposed transaction delivers meaningful benefits to stakeholders of Hollysys,” commented Mr. Ke Lei, director of Recco Control Technology Pte. Ltd. “As a leading Chinese supplier of automation and IT solutions that operates in an increasingly complex global environment, we believe this transaction will best position the Company strategically for long-term growth while simultaneously providing current shareholders with an attractive return on investment.” The consortium has engaged with various financing sources and conducted extensive analysis of all available financing options and is highly confident in its ability to secure definitive commitments for the required debt and equity funding, subject to terms and conditions to be set forth therein, to be in place when the definitive agreements for the acquisition are signed.