Hollysys announces formal sale process as part of strategic review

Hollysys announced the formation of a special committee of the board of directors of the company to conduct a formal sale process. This decision follows a review of various strategic options. As part of its work, the special committee will immediately engage in discussions as to next steps with Recco Control Technology and Dazheng Group Investment in response to the previously announced unsolicited, non-binding offer to acquire the company at $25.00 per share in cash. In parallel, the special committee will, with the assistance of the company’s financial advisor, Deutsche Bank, begin an expedited process to solicit additional serious and compelling offers, with the aim of providing bidders with the opportunity to participate on a level playing field. The special committee will work to advance this process in an orderly and expeditious manner and will provide shareholders with timely material updates. Separately, the board has engaged with certain shareholders in response to the notices of intention to request a special meeting. If the board determines the required shareholding threshold to convene a special meeting has been met as of the demand record date of September 6, and such requests are accompanied by other materials required by the memorandum and articles of association of the company, the board will duly move forward to send notice of a special meeting to shareholders. The company is committed to taking actions in the best interests of shareholders and will continue to work with its financial and legal advisors to identify the best path forward for value creation. The board, in its assessment of the strategic options in furtherance of shareholder interests, cautions the shareholders and others considering trading the company’s securities that no decisions have been made with respect to any strategic option that the company may pursue. There can be no assurance that any definitive offer will be received or that any definitive agreement will be executed relating to any transaction.