Consortium says Hollysys management bid ’empty gesture already used’

A buyer consortium led by Recco Control Technology and Dazheng Group issued a statement regarding Hollysys Automation Technologies’ update on its ongoing sale process and disclosure of a supposed management-backed buyout proposal, stating in part: “Dating back to August 2021, Hollysys has publicly announced multiple take private offers from its management team. Ironically, the only two times Hollysys management has expressed apparent interest in taking the company private have coincided with the time periods when the Hollysys Board was evaluating proposals from unaffiliated bidders… An important aspect of any sale process is for a Board of Directors or independent Special Committee to solicit and internalize the views of its shareholders. This sale process is no different. The Consortium believes it is the best course of action for the Hollysys Board and Special Committee to listen to the views of its shareholders. An independent Board elected by shareholders is the best way to ensure unaffiliated shareholders’ interests are protected during this sale process. In its announcement today, the Board has essentially confirmed that certain shareholders owning nearly a third of shares outstanding have provided updated materials with the proper record date – a date that was set by the Hollysys Board. Now that shareholders have provided the Board with updated materials, the Consortium fully expects the Board to fulfill its fiduciary and legal obligation to convene a special meeting without delay… The Consortium reiterates its interest in acquiring Hollysys and motivation to enter due diligence and further negotiations with the Special Committee. The Consortium is confident its all-cash offer of US$25 per share is at an attractive premium and would see significant support from Hollysys shareholders. The Consortium looks forward to conducting due diligence and engaging constructively with the Special Committee.”