- Heng Ren Partners requests Sinovac Biotech (SVA, Financial) to disclose the record and payment dates for a $55 special cash dividend.
- Heng Ren proposes an additional $41 per share dividend, totaling $96 per share.
- Sinovac would retain over $1.3 billion in net cash, sufficient for operating needs, after the dividends.
Sinovac Biotech Ltd. (SVA), a prominent player in the pharmaceutical sector, has been called upon by its shareholder, Heng Ren Partners, to provide immediate transparency regarding the record and payment dates for a previously announced special cash dividend of $55 per share. This request comes in the wake of ongoing concerns among shareholders due to a prolonged trading halt on the Nasdaq, which has left them without the ability to trade their shares.
Heng Ren Partners further suggests that Sinovac should distribute an additional dividend of $41 per share. This additional payout would elevate the total dividend to $96 per share. Despite the proposed large cash distribution, Sinovac's financial position reportedly remains strong, with more than $1.3 billion in net cash projected to be available post-distribution.
This financial maneuver comes after a history of Sinovac maintaining substantial cash reserves. As noted in company financial reports, these reserves could finance nearly nine years of capital expenditures without the need for revenue generation or operating cash flow. This raises questions among shareholders and regulators alike, with the U.S. Securities and Exchange Commission having previously inquired about limitations on Sinovac's ability to distribute earnings.
For additional details, stakeholders are encouraged to visit the official Heng Ren Partners website, where shareholders can express their concerns and obtain further information regarding the dividend distribution strategy.
