Hollysys Announces Completion of Merger Transaction with Ascendent Capital Partners
Hollysys Automation Technologies (NASDAQ: HOLI) and Ascendent Capital Partners have completed their merger transaction. As a result, Hollysys has become a wholly-owned subsidiary of Ascendent and will cease to be publicly traded. The company has requested the suspension of its shares on Nasdaq as of July 25, 2024.
Key points of the merger include:
- Shareholders will receive $26.5 per share in cash
- The merger was approved by shareholders on February 8, 2024
- Hollysys will suspend its SEC reporting obligations
- The company will be delisted from Nasdaq
Both parties expressed satisfaction with the deal, viewing it as the best path forward for the company and its stakeholders.
Hollysys Automation Technologies (NASDAQ: HOLI) e Ascendent Capital Partners hanno completato la loro fusione. Di conseguenza, Hollysys è diventata una sussidiaria interamente controllata da Ascendent e cesserà di essere quotata pubblicamente. L'azienda ha richiesto la sospensione delle proprie azioni su Nasdaq a partire dal 25 luglio 2024.
I punti chiave della fusione includono:
- Gli azionisti riceveranno $26.5 per azione in contante
- La fusione è stata approvata dagli azionisti l'8 febbraio 2024
- Hollysys sospenderà i suoi obblighi di reporting presso la SEC
- L'azienda sarà esclusa dal Nasdaq
Entrambe le parti hanno espresso soddisfazione per l'accordo, considerandolo il miglior percorso da seguire per l'azienda e i suoi stakeholder.
Hollysys Automation Technologies (NASDAQ: HOLI) y Ascendent Capital Partners han completado su transacción de fusión. Como resultado, Hollysys se ha convertido en una subsidiaria de propiedad total de Ascendent y dejará de cotizar públicamente. La empresa ha solicitado la suspensión de sus acciones en Nasdaq a partir del 25 de julio de 2024.
Los puntos clave de la fusión incluyen:
- Los accionistas recibirán $26.5 por acción en efectivo
- La fusión fue aprobada por los accionistas el 8 de febrero de 2024
- Hollysys suspenderá sus obligaciones de reporte ante la SEC
- La empresa será excluida del Nasdaq
Ambas partes expresaron satisfacción con el acuerdo, viéndolo como el mejor camino a seguir para la empresa y sus partes interesadas.
Hollysys Automation Technologies (NASDAQ: HOLI)와 Ascendent Capital Partners가 합병 거래를 완료했습니다. 그 결과, Hollysys는 Ascendent의 완전 자회사가 되었으며, 상장 폐지됩니다. 회사는 2024년 7월 25일부터 Nasdaq에서 주식 거래를 중단할 것을 요청했습니다.
합병의 주요 내용은 다음과 같습니다:
- 주주들은 주당 26.5달러의 현금을 받을 것
- 합병은 2024년 2월 8일에 주주들에 의해 승인을 받았습니다
- Hollysys는 SEC 보고 의무를 중단할 것입니다
- 회사는 Nasdaq에서 상장 폐지될 것입니다
양측 모두 합의에 대한 만족감을 표명하며, 이를 회사와 이해관계자들에게 최선의 길로 보고 있습니다.
Hollysys Automation Technologies (NASDAQ: HOLI) et Ascendent Capital Partners ont terminé leur transaction de fusion. En conséquence, Hollysys est devenue une filiale à part entière d'Ascendent et cessera d'être cotée en bourse. L'entreprise a demandé la suspension de ses actions sur le Nasdaq à partir du 25 juillet 2024.
Les points clés de la fusion comprennent :
- Les actionnaires recevront 26,5 $ par action en espèces
- La fusion a été approuvée par les actionnaires le 8 février 2024
- Hollysys suspendra ses obligations de reporting auprès de la SEC
- L'entreprise sera radiée du Nasdaq
Les deux parties ont exprimé leur satisfaction à l'égard de l'accord, le considérant comme la meilleure voie à suivre pour l'entreprise et ses parties prenantes.
Hollysys Automation Technologies (NASDAQ: HOLI) und Ascendent Capital Partners haben ihre Fusionsvereinbarung abgeschlossen. Infolgedessen ist Hollysys eine hundertprozentige Tochtergesellschaft von Ascendent geworden und wird nicht mehr öffentlich gehandelt. Das Unternehmen hat die Aussetzung seiner Aktien an der Nasdaq ab dem 25. Juli 2024 beantragt.
Wichtige Punkte der Fusion sind:
- Aktionäre erhalten 26,5 USD pro Aktie in bar
- Die Fusion wurde am 8. Februar 2024 von den Aktionären genehmigt
- Hollysys wird seine SEC-Berichtspflichten aussetzen
- Das Unternehmen wird von der Nasdaq delistet
Beide Parteien äußerten Zufriedenheit mit dem Deal und betrachten ihn als den besten Weg für das Unternehmen und seine Stakeholder.
- Shareholders will receive $26.5 per share in cash
- The merger provides an exit strategy for shareholders in a challenging environment
- The deal may bring new vision and potential improvements to Hollysys' business operations
- Hollysys will cease to be a publicly traded company, limiting investor access
- The company will suspend its SEC reporting obligations, reducing transparency
- Shareholders lose potential future gains from Hollysys as a public entity
The completion of Hollysys Automation Technologies' merger with Ascendent Capital Partners marks a significant shift in the company's structure and market presence. At
This deal's implications are far-reaching:
- Privatization Impact: Hollysys will delist from Nasdaq, reducing public investment options in the automation technology sector, particularly for those seeking exposure to the Chinese market.
- Market Consolidation: This merger could trigger further consolidation in the industrial automation space, potentially leading to increased M&A activity.
- Strategic Shift: Under private ownership, Hollysys may pursue more aggressive growth strategies or focus on specific market segments without the pressures of quarterly reporting.
Investors should monitor how this privatization affects market dynamics in the automation sector and watch for potential ripple effects on competitors and suppliers in the coming months.
The merger transaction between Hollysys and Ascendent Capital Partners presents several key legal considerations:
- Shareholder Rights: The
$26.5 per share offer, approved by shareholders, seems to have satisfied fiduciary obligations. However, the provision for dissenting shareholders under the BVI Business Companies Act is noteworthy, potentially leading to fair value disputes. - Regulatory Compliance: The planned delisting from Nasdaq and deregistration with the SEC through Form 25 and Form 15 filings indicate a meticulous approach to regulatory requirements. This process typically takes about 90 days, ensuring a smooth transition from public to private status.
- Corporate Governance: The shift to private ownership will significantly alter Hollysys' governance structure. Investors should be aware that this change might impact transparency and minority shareholder protections.
While the transaction appears legally sound, any unforeseen complications in the delisting process or potential challenges from dissenting shareholders could introduce legal risks. Stakeholders should closely monitor the completion of all regulatory filings and any emerging legal disputes.
The Hollysys-Ascendent merger signifies a notable trend in the industrial automation market:
- Private Equity Interest: This deal underscores growing private equity interest in the automation sector, particularly in emerging markets like China. It suggests that PE firms see untapped potential and room for operational improvements in these companies.
- Valuation Metrics: The
$26.5 per share price implies a premium of about35% over Hollysys' average trading price in the months preceding the merger announcement. This valuation could serve as a benchmark for future deals in the sector. - Market Consolidation: The transaction may trigger a wave of consolidation in the fragmented industrial automation market, especially in Asia. Competitors might seek similar deals to maintain competitiveness.
For investors, this merger highlights the potential for value creation in mid-sized automation companies. It also signals that the market might be undervaluing certain players in this space, presenting opportunities for those who can identify similar targets before they become acquisition candidates.
• Requests trading of its shares be suspended as of close of trading July 25, 2024
Leon Meng, Founding Managing Partner and Chairman of Ascendent said: "We are delighted to complete the acquisition of Hollysys. We look forward to working constructively with the key management and employees of the Company to bring our vision to the business and create the best possible outcome for the staff and customers of Hollysys in the future."
Dr. Kok Peng Teh, Chairman of the Special Committee of the Board of Directors of Hollysys, commented: "We are pleased that the Merger has successfully closed, delivering the best value for our shareholders despite the challenging environment. We believe that the Merger represents the best path forward for the Company, our management, employees and all other stakeholders."
As a result of the Merger, the Company has become a wholly owned subsidiary of Parent and will cease to be a publicly traded company. The Company has requested that trading of its ordinary shares (the "Shares") on the Nasdaq Global Select Market ("Nasdaq") be suspended as of the close of trading on July 25, 2024 (
Pursuant to the terms of the Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting held on February 8, 2024, each Share issued and outstanding immediately prior to the effective time of the Merger (the "Effective Time"), has been cancelled and ceased to exist in exchange for the right to receive
Each record holder of Shares as of immediately prior to the Effective Time who is entitled to the merger consideration will receive a letter of transmittal specifying how the delivery of the merger consideration will be effected and instructions for surrendering their Shares in exchange for the merger consideration. Record holders of Shares should wait to receive the letters of transmittal before surrendering their Shares. A holder of Shares held in "street name" by a broker, bank or other nominee should receive instructions from its broker, bank or other nominee as to how to receive the applicable merger consideration and should address any questions in relation thereto to its broker, bank or other nominee.
The Company has requested that Nasdaq file a Form 25 with the Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of the Shares on Nasdaq and the deregistration of the Company's registered securities. The deregistration will become effective 90 days after the filing of the Form 25 or such shorter period as may be determined by the SEC. The Company intends to suspend its reporting obligations under the Securities Exchange Act of 1934, as amended, by filing a Form 15 with the SEC in approximately ten days following the filing of the Form 25. The Company's obligations to file with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will terminate once the deregistration becomes effective.
Advisors
Deutsche Bank AG, Davis Polk & Wardwell, Mourant Ozannes (
About Hollysys Automation Technologies Ltd.
Hollysys is a leading automation control system solutions provider in
About Ascendent Capital Partners
Ascendent Capital Partners, headquartered in
Ascendent has successfully led and executed a large number of innovative and ground-breaking private equity investments, generating strong risk-adjusted returns for investors and business growth for our portfolio companies. Ascendent has established a consistent track record in providing advice and solution capital to entrepreneurs, business owners and management teams, building long-lasting relationships through in-depth collaboration. For additional information about Ascendent, please visit Ascendent's website at www.ascendentcp.com.
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:
For Hollysys Automation Technologies Ltd.
Brunswick Group
hollysys@brunswickgroup.com
Daniel Del Re (
ddelre@brunswickgroup.com
+852 9255 5136
Libby Lloyd (
llloyd@brunswickgroup.com
+1 347 283 3871
For Ascendent Capital Partners
FGS Global
Ben Richardson (
ben.richardson@fgsglobal.com
+852 6011 6658
Harry Florry (
harry.florry@fgsglobal.com
+852 9818 2239
John Christiansen (
john.christiansen@fgsglobal.com
+1 415 613 2448
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SOURCE Hollysys Automation Technologies Ltd
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