BEIJING - Hollysys Automation (NASDAQ:HOLI) Technologies Ltd. (NASDAQ: HOLI), a prominent provider of automation control system solutions, announced today that its board of directors has recommended shareholders to vote in favor of a merger agreement with Ascendent Capital Partners. The acquisition proposal is set at a cash price of $26.50 per share.
The extraordinary general meeting (EGM) to vote on this proposal is scheduled for February 8, 2024, in Hong Kong. The board's recommendation follows a unanimous endorsement from an independent special committee, which concluded that the merger is in the best interests of the company and its shareholders.
The merger agreement was the culmination of a comprehensive process initiated by the special committee on September 29, 2023, aimed at maximizing shareholder value. After evaluating several bids, Ascendent's offer was deemed most favorable, representing a 42% premium over Hollysys' share price as of August 23, 2023.
Shareholders of record as of December 28, 2023, will be eligible to vote at the EGM. The affirmative vote of a majority of the votes cast at the EGM is required to authorize and approve the merger agreement.
The proposed merger is not the only matter on the agenda for the upcoming meeting. The company has also acknowledged the revocation of requests by certain shareholders to convene a special meeting, indicating the shareholding threshold for such a request is no longer met.
The proxy materials, including detailed information about the merger and the EGM, will be mailed to Hollysys shareholders. These materials will also be available on the U.S. Securities and Exchange Commission's website.
This announcement serves as an informational notice and is not a solicitation of a proxy, vote, or approval for the transaction. Hollysys, based in China with operations across Asia, specializes in industrial automation and rail transportation solutions. The information in this article is based on a press release statement.
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