A consortium of buyers led by Dazheng Group Acquisition Limited has issued a statement urging the shareholders of Hollysys Automation Technologies Ltd. to reject the offer from Ascendent Capital Partners and accept its superior offer of US$29.50 per share.
The consortium claims that its offer provides an 11.3% premium to Ascendent’s offer and has more closing certainty, as it is backed by financing above industry standards and requires less or no regulatory approvals.
The consortium also says that it is committed to acquiring Hollysys regardless of the market conditions or the outcome of the Extraordinary General Meeting (EGM) on February 8, 2024, unless more than 20% of the shareholders dissent. The consortium accuses the Special Committee of Hollysys Automation Technologies of not acting in the best interests of the shareholders, as it did not recommend the adjournment of the EGM to allow more time for negotiations.
The consortium asserts that its proposal is superior or reasonably likely to be superior, as the Special Committee acknowledged by starting negotiations on January 28, 2024. The consortium appeals to the shareholders to vote against the Ascendent transaction and in favor of its proposal.
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