In a significant move towards corporate restructuring, Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) announced today that its shareholders have given their nod of approval for the proposed merger with entities affiliated with Ascendent Capital Partners. The decision was made at an extraordinary general meeting of shareholders (“EGM”) held earlier today, where the majority of shareholders voted in favor of the merger agreement.
The merger, as outlined in the agreement and plan dated December 11, 2023, involves Hollysys merging with and into a subsidiary of Ascendent Capital Partners, with the latter becoming the sole owner of Hollysys. Approximately 76.95% of Hollysys’ total issued and outstanding ordinary shares participated in the vote, with a resounding 86.94% of those shares casting their ballots in favor of the merger.
Furthermore, shareholders at the EGM also greenlit the appointment of independent directors to the board, underscoring their commitment to ensuring robust governance throughout the merger process.
In response to the shareholder approval, the board of directors expressed gratitude for the support, emphasizing their belief that the merger represents the best path forward for the company and its shareholders. They affirmed their dedication to swiftly closing the transaction to deliver immediate value to stakeholders.
However, the completion of the merger remains contingent upon fulfilling certain conditions outlined in the agreement. Notably, the merger’s finalization hinges on compliance with the BVI Business Companies Act and the satisfaction of conditions specified in the merger agreement. Despite objections from some shareholders holding more than 10% of Hollysys’ outstanding shares, the company remains focused on navigating the remaining hurdles and bringing the merger to fruition.
If completed, the merger would result in Hollysys becoming a privately held entity, with its shares no longer trading on the NASDAQ Global Select Market. The company is committed to working diligently with all parties involved to meet regulatory requirements and conclude the merger expeditiously.
As Hollysys progresses toward this transformative merger, shareholders and industry observers await further developments with keen interest, anticipating the potential implications for the company’s future trajectory and market standing.
