Purchaser Group Instigates a Solicitation of Agreements from Stockholders of Hollysys Automation Technologies Ltd (NASDAQ: HOLI) to Pursue Support on Stockholder Resolutions

The buyer syndicate comprising of CPE Funds Management Limited, Mr. Shao Baiqing, and Ace Lead Profits Limited today began soliciting consents from stockholders of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) concerning the grouping’s planned purchase of the company.

Syndicate mails a letter to Stockholders seeking approval

The syndicate dispatches a letter to significant beneficial-owner stockholders through their banks and agents, along with a WHITE agreement card. Hollysys stockholders, as of June 24, 2021, are qualified to approve accords.

The full text of the syndicate’s letter being posted to Hollysys stockholders is as follows:

Dear Fellow Stockholder,

We, the buyer syndicate comprising of CPE Funds Management Limited, Mr. Shao Baiqing, and Ace Lead Profits Limited, are lobbying accords from stockholders of Hollysys Automation to progress the planned purchase of all unresolved ordinary shares of the company not previously maintained by the syndicate at a value of $17.10 per share in cash under the reviewed obligatory offer acquiesced by us on January 29, 2021.

The Per Share Offer Value signifies a premium of 37% to the concluding price of the company’s shares on December 4, 2020, a premium of 48% to the 90-day volume-weighted modest price as of December 4, 2020, and a premium of 21% to the concluding price of $14.16 on June 25, 2021.

This solicitation, if fruitful, will ease the syndicate’s efforts to proceed with the Planned Purchase notwithstanding the indecision of the Board of directors of the company. Suppose the stockholders holding more than 50% of the unresolved shares of the company transport their agreements to the resolutions as delivered in the consent card. In that case, such determinations will become operative under the company’s articles of association and the BVI Business Companies Act 2004.

Syndicate seeks Stockholder approval on following resolutions

  • The Per Share Offer Price is adequate to the stockholders of the company;
  • The Board shall expeditiously enter into dialogue with the Conglomerate to arrive into a conclusive unification agreement sensibly in deference of the Planned Purchase at the Per Share Offer Price;
  • The Rights Agreement shall be unexercisable in deference of the Planned Purchase, the Tender Bid, and Conglomerate Movements;
  • The company shall not issue any stocks with special privileges or at a markdown to the present market value of the standard stocks of the company without the previous endorsement of a resolution of the company’s stockholders; and
  • Each director of the company shall take all other activities essential or needed to effect the previous resolutions, counting taking all necessary to condense all privileges under the Rights Agreement unexercisable in deference of the Planned Purchase, the Tender Offer, or Conglomerate Act.