In addition to the Tazheng Group and TFI Asset Management Limited, GA Technologies Limited has also agreed to join the consortium. The new members bring more credibility and secure financing to the consortium.

The consortium is fully confident that its new proposal will be deemed superior by the Hollysys Board, with a premium that is attractive to Hollysys shareholders and supported by solid financing. The strategic and financial benefits of the revised proposal include:

Highest price: 9.4% higher than the consortium’s previous offer of $26.50 per share submitted to the Board of Directors on November 8, 2023, and again 9.4% higher than Ascendent Capital’s competing offer;

Attractive Premium: This is an attractive and immediate premium for Hollysys shareholders. This new offer price of $29.00 per share represents:

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A 55.5% premium over Hollysys’ closing price of $18.66 on 23 August 2023 (i.e. the undisturbed price prior to the Consortium’s submission of the price to the Company on 24 August 2023);
A 40.8% premium to Hollysys’ closing price of $20.60 on November 3, 2023 (i.e., the undisturbed price prior to Ascendent Capital’s announcement of the offer on November 6, 2023);

Solid Financing: The consortium’s proposal is supported by secured and reliable financing, which is further enhanced by the addition of GA Technologies Limited. The Consortium continues to believe that its financing provides the greatest certainty for Hollysys shareholders;

Regulatory confidence: The consortium has analysed the potential regulatory aspects and is very confident that it will be able to obtain all necessary approvals in a timely manner.

In addition, the consortium also disclosed in the offer that it intends to grant no less than 25% of the shares to senior managers, core technical personnel, middle managers and key employees who have made outstanding or special contributions to Hollysys and its subsidiaries. This incentive program will be implemented through a comprehensive employee incentive program designed to align employee interests with the overall long-term goals and prosperity of the company.