- Board Special Committee receives several
indications of interest from financial sponsors and strategic
buyers
- Board to confirm plans for special meeting,
pending outcome of November 21 court
hearing on an injunction application against Ace Lead Profits and
its Hollysys shares
BEIJING, Oct. 30,
2023 /PRNewswire/ -- Hollysys Automation Technologies
Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company") today announced
that the Special Committee of the Board of Directors, which was
established to conduct a sale process as announced on October 2, and its advisors have been in contact
with multiple prospective buyers. These include financial sponsors
as well as strategic buyers for which there would be compelling
industrial logic to an acquisition.
Additionally, the Special Committee and its advisors are
considering bids submitted by Recco Control Technology and Dazheng
Group (Hong Kong) Investment
Holdings Company (collectively, the "Recco Consortium") and by
representatives of the Hollysys management team. It is engaged in
ongoing discussions with both groups and will provide updates on
material developments as soon as practicable.
In a statement, the members of the Special Committee stated: "We
are making every effort to conduct a fair and full process and to
be fully responsive to all current and potentially interested
parties to facilitate due diligence and enable them to make updated
and binding proposals. Our objective is to present to shareholders
a recommended proposal that provides compelling value, committed
financing, regulatory certainty, and a viable pathway to
closing."
The sale process is targeted to be at an advanced stage, with a
preferred bidder identified, as soon as early December.
Further Update on Special Meeting Request
As previously announced, on October 20,
2023, the Company received updated materials from
requisitioning shareholders with respect to a request to convene a
special meeting of shareholders.
While the requisition shareholders were on the register as of
the demand record date of September 6,
2023, there is currently a dispute (to which the Company is
not a party) over the ownership and control of Ace Lead Profits
Limited and its shares in the Company, which is subject to an
injunction hearing in the Hong Kong High Court on November 21, 2023. Following the injunction
hearing on November 21, 2023, the
Company will re-assess promptly whether to convene a special
meeting.
About Hollysys Automation Technologies Ltd.
Hollysys is a leading automation control system solutions
provider in China, with overseas
operations in eight other countries and regions throughout
Asia. Leveraging its proprietary
technology and deep industry know-how, Hollysys empowers its
customers with enhanced operational safety, reliability,
efficiency, and intelligence which are critical to their
businesses. Hollysys derives its revenues mainly from providing
integrated solutions for industrial automation and rail
transportation. In industrial automation, Hollysys delivers the
full spectrum of automation hardware, software, and services
spanning field devices, control systems, enterprise manufacturing
management and cloud-based applications. In rail transportation,
Hollysys provides advanced signaling control and SCADA (Supervisory
Control and Data Acquisition) systems for high-speed rail and urban
rail (including subways). Founded in 1993, with technical expertise
and innovation, Hollysys has grown from a research team
specializing in automation control in the power industry into a
group providing integrated automation control system solutions for
customers in diverse industry verticals. As of June 30, 2023, Hollysys had cumulatively carried
out more than 45,000 projects for approximately 23,000 customers in
various sectors including power, petrochemical, high-speed rail,
and urban rail, in which Hollysys has established leading market
positions.
Safe Harbor Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact included
herein are "forward-looking statements," including statements
regarding the ability of the Company to achieve its commercial
objectives; the business strategy, plans and objectives of the
Company; growth in financial and operational performance of the
Company; and any other statements of non-historical information.
These forward-looking statements are often identified by the use of
forward-looking terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "target," "confident," or similar expressions involve
known and unknown risks and uncertainties. Such forward-looking
statements, based upon the current beliefs and expectations of
Hollysys' management, are subject to risks and uncertainties, which
could cause actual results to differ from the forward-looking
statements. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Investors should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the Company's reports that are filed
with the Securities and Exchange Commission and available on its
website (http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than
as required under the securities laws, the Company does not assume
a duty to update these forward-looking statements.
Contact Information
Company Contact:
Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-5898-1386
investors@hollysys.com
Media Contacts (Hong Kong and
New York):
Brunswick Group
hollysys@brunswickgroup.com
Emily Wong (Hong Kong)
ewong@brunswickgroup.com
+852 6627 8297
Libby Lloyd (New York)
llloyd@brunswickgroup.com
+1 347 283 3871
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SOURCE Hollysys Automation Technologies Ltd