- Sinovac Biotech Ltd. (SVA, Financial) plans to file definitive proxy materials for an upcoming Special Meeting of Shareholders.
- The company aims to counter a hostile takeover attempt by a dissenting investor group.
- The Sinovac Board promises a $55.00 per share special dividend to restore fairness to shareholders.
Sinovac Biotech Ltd. (SVA), a prominent provider of biopharmaceutical products in China, has announced its intention to file definitive proxy materials with the Securities and Exchange Commission (SEC) in preparation for a Special Meeting of Shareholders scheduled for July 9, 2025. This move is part of Sinovac's strategy to oppose a hostile attempt by a dissenting investor group comprising Advantech/Prime Success and Vivo Capital to remove the current Sinovac Board.
In a letter addressed to shareholders, Sinovac's Board of Directors highlighted the importance of the upcoming meeting and urged shareholders to reject the attempts by the dissenting group to instate their own slate of nominees. The dissenting group's efforts, according to Sinovac, stem from a series of actions by an "Imposter Board" that had been previously invalidated by a UK Privy Council ruling.
As part of its efforts to restore shareholder value and fairness, Sinovac has announced a special cash dividend of $55.00 per share, intended to be distributed on or about July 9, 2025. This dividend is part of the Board’s broader commitment to correct past injustices and align interests with the rightful shareholders of the company.
In the face of the dissenting group's past actions, which the Sinovac Board claims have undermined shareholder value and governance, the company is also working towards resolving NASDAQ compliance issues to resume trading. Furthermore, the Board is exploring additional avenues for growth, including a potential dual listing in Hong Kong, to safeguard and maximize shareholder investments.
