Buyer Consortium Extends Deadline for HollySys Shareholders to Submit Consents to August 20, 2021

Rhea-AI Summary

The buyer consortium led by Shao Baiqing has extended the deadline for shareholders of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) to submit consents regarding its proposed acquisition at $17.10 per share. The new deadline is August 20, 2021, driven by shareholder inquiries concerning ongoing litigation in the British Virgin Islands Court about the legality of the Company's board amendments. The Consortium criticized the Company’s July 15 press release as misleading and has opted to withhold further comments until the Court’s judgment is issued.

Positive

• Acquisition offer at $17.10 per share could provide liquidity for shareholders.
• Deadline extension allows shareholders more time to make informed decisions.

Negative

• Ongoing litigation may create uncertainty surrounding the acquisition.
• Concerns over the legality of board amendments could undermine shareholder confidence.

The buyer consortium (the “Consortium”) consisting of Mr. Shao Baiqing, Ace Lead Profits Limited and CPE Funds Management Limited today announces the extension of the deadline by which shareholders of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (the “Company”) may submit consents to the Consortium’s proposed resolutions concerning its proposed acquisition of all outstanding ordinary shares of the Company not already owned by the Consortium at a price of $17.10 per share in cash. The Company’s shareholders are now cordially asked to sign, date and return the WHITE consent card or otherwise submit their consents as soon as possible, but in any event on or before August 20, 2021.

The decision to extend the deadline for submitting consents is primarily prompted by inquiries from shareholders who wish to know the outcome of the ongoing litigation before the British Virgin Islands Court (the “Court”) concerning the legality of the Company’s amendments to its memorandum and articles of association, hastily passed by the Company’s board of directors and without shareholders’ approval, on January 7, 2021. As the Court has not handed down its judgment, the Consortium will extend the deadline for submission to August 20, 2021, which may be further extended if the Court judgment for this litigation is not available at that time.

In further response to shareholder inquiries, the Consortium states the following regarding the Company’s July 15, 2021 press release:

“The Consortium is aware of the press release by the Company on July 15, 2021, with the misleading title “HollySys Sets Record Straight on Consortium’s Consent Solicitation” (the “July 15 Press Release”). We do not agree with the July 15 Press Release. It should be noted that many of the issues raised in the July 15 Press Release are currently being scrutinised before the Court, and the Consortium believes that the July 15 Press Release is disrespectful to the Court whilst it deliberates on the proceedings, and irresponsible and misleading to the Company’s shareholders. Accordingly, and to show the necessary respect to the Court as any sensible persons should, it is the Consortium’s decision not to make any further comment on the July 15 Press Release until judgment is handed down by the Court. Once a judgment is handed down, the Consortium will make an announcement for the purpose of, among other things, responding to the July 15 Press Release.”

Shareholders owning shares through a bank or broker (i.e., in “street-name” or as a “beneficial owner”) who have not yet received the Consortium’s consent materials should promptly contact their bank or broker and request instructions regarding the WHITE consent card. Shareholders with questions about how to submit consents and related matters should promptly contact Innisfree M&A Incorporated, the firm assisting the Consortium with the consent solicitation, by email at HOLIconsent@innisfreema.com or by phone at +1 (877) 750-9501 (toll-free from the U.S. and Canada), or at +1 (412) 232-3651 (from other locations), during the hours of 10:00 a.m.-7:00 p.m. Eastern Time, Monday-Friday, and 10:00 a.m.-2:00 p.m. Eastern Time on Saturdays.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721006041/en/

FAQ

What is the new deadline for consents regarding the acquisition of HOLI?

The new deadline for submitting consents is August 20, 2021.

What is the acquisition price offered by the Consortium for HOLI shares?

The Consortium is offering $17.10 per share for all outstanding HOLI shares not already owned by them.

Why was the deadline for submitting consents extended?

The deadline was extended due to shareholder inquiries about ongoing litigation concerning the legality of the Company's board amendments.

What did the Consortium say about the July 15 press release from HOLI?

The Consortium criticized the July 15 press release as misleading and disrespectful to the Court.

How can shareholders contact for more information about the consent process?

Shareholders can contact Innisfree M&A Incorporated at HOLIconsent@innisfreema.com or call +1 (877) 750-9501.