Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) has announced the end of the “go-shop” period under the merger agreement with Ascendent Capital Partners. During this period, the company solicited and encouraged acquisition proposals, receiving two additional proposals. However, the Special Committee of the Board of Directors has determined that none of these proposals currently constitutes a Superior Proposal. As a result, the “no-shop” provisions in the merger agreement are now in effect.
The Special Committee, along with financial advisors and outside legal counsel, will continue to evaluate the merger agreement and any potential alternative proposals. If the company changes its recommendation and accepts a Superior Proposal in accordance with the merger agreement, a termination fee of $33 million will become payable.
According to a spokesperson for Hollysys, a Superior Proposal is more than just a higher headline price. It must also demonstrate committed financing and a viable path to transaction closing. The company remains committed to maximizing value for shareholders and fulfilling the requirements of the signed merger agreement.