Hollysys’ Board issues letter in support of transaction with Ascendant Capital

The Board of Directors of Hollysys Automation Technologies issued a letter to shareholders reiterating its support for the proposed acquisition of the Company by a buyer controlled by Ascendent Capital Partners at the upcoming extraordinary general meeting to be held on February 8. In the letter, the Company also addressed statements published by Dazheng Group Acquisition. Also, in a proxy supplement to be filed today, the Company sets out in detail its engagement with Dazheng as part of its rigorous process to maximize value for Hollysys shareholders. The letter began “Dear Fellow Shareholders: We write today to reiterate our strong recommendation to vote FOR the proposed acquisition of Hollysys Automation Technologies by a buyer controlled by Ascendent Capital Partners.” The letter said the recommendation was made “after careful consideration and deliberation on delivering the compelling transaction for shareholders,” and that “An offer at a higher price that is not accompanied by credible financing is not a superior offer.” The letter said “Failing to vote FOR the Ascendent transaction on February 8, 2024 could result in a dramatic decline in share price given the current market conditions – as of January 29, 2024, the S&P China Select ADR Index is down 24.77% over a 12-month period.”