On January 31, 2024, Dazheng Group Acquisition Limited announced that it has issued a letter to shareholders of Hollysys Automation Technologies Ltd, after the latest rejection from the Company?s Special Committee to reaffirm their commitment to acquire the Company at us$29.50 per share. Dazheng urged shareholders to vote against the Ascendent Capital transaction and requested the Board of Directors of the Company to comply with its fiduciary duty and convene a shareholder meeting to allow shareholders to consider the offer from the Consortium which realizes greater value for the Company?s shareholders. The Special Committee of the Board has engaged in a sales process for the Company, which has resulted in the Board only allowing shareholders to consider the Ascendent transaction and the Board recommending shareholders accept Ascendents $26.50 proposal over the Consortiums $29.50 proposal (11.3% higher).

Additionally, Institutional Shareholder Services and Glass Lewis have both recommended shareholders vote against the Ascendent transaction and it is not surprising that multiple shareholders have voiced their disdain for the proposed Ascendent transaction.