Exhibit 99.1
Hollysys Announces Formal Sale Process as Part of Review of Strategic Options
- Forms special committee of independent directors to conduct process -
- Will evaluate proposal from bidder group -
- Deutsche Bank to solicit additional potential offers on behalf of the Company -
BEIJING, October 2, 2023 — Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (“Hollysys” or the “Company”),
today announced the formation of a special committee (the “Special Committee”) of the board of directors of the Company (the “Board”) to conduct a formal sale process. The Special Committee consists of the three independent
directors, Dr. Kok Peng Teh, Dr. Jianyun Chai, and Ms. Khiaw Ngoh Tan. This decision follows a review of various strategic options to maximize shareholder value.
As part of its work, the Special Committee will immediately engage in discussions as to next steps with Recco Control Technology and Dazheng
Group (Hong Kong) Investment Holdings Company (collectively, the “Recco Consortium”) in response to the previously announced unsolicited, non-binding offer to acquire the Company at $25.00 per share
in cash.
In parallel, the Special Committee will, with the assistance of the Company’s financial advisor, Deutsche Bank, begin an
expedited process to solicit additional serious and compelling offers, with the aim of providing bidders with the opportunity to participate on a level playing field.
The Special Committee will work to advance this process in an orderly and expeditious manner and will provide shareholders with timely
material updates.
Separately, the Board has engaged with certain shareholders in response to the notices of intention to request a
special meeting. If the Board determines the required shareholding threshold to convene a special meeting has been met as of the demand record date of September 6, 2023, and such requests are accompanied by other materials required by the
memorandum and articles of association of the Company, the Board will duly move forward to send notice of a special meeting to shareholders.
The Company is committed to taking actions in the best interests of shareholders and will continue to work with its financial and legal
advisors to identify the best path forward for value creation. The Board, in its assessment of the strategic options in furtherance of shareholder interests, cautions the shareholders and others considering trading the Company’s securities that
no decisions have been made with respect to any strategic option that the Company may pursue. There can be no assurance that any definitive offer will be received or that any definitive agreement will be executed relating to any transaction.
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.