Sinovac accelerates special dividend payments amid board dispute

Published 17/06/2025, 19:02
Sinovac accelerates special dividend payments amid board dispute

BEIJING - Sinovac Biotech Ltd. (NASDAQ:SVA), currently trading at $0.13 per share with a market capitalization of $38.68 million, announced Tuesday that it will accelerate payment of its previously declared $55 per share special dividend to July 7, ahead of a Special Shareholder Meeting scheduled for July 8, 2025. According to InvestingPro analysis, the company’s shares have declined nearly 50% over the past year.

The company’s board also declared a second special cash dividend of $19 per share to be paid after the meeting, with an additional $3.73 per share possible if certain legal proceedings conclude with cancellation of PIPE shares.

These dividend announcements come amid an ongoing governance dispute between the current Sinovac board and what the company described as a "Dissenting Investor Group" led by Advantech/Prime Success and Vivo Capital, who have filed lawsuits challenging the board’s legitimacy.

The current board, which states it was installed by Privy Council order in accordance with Antiguan law, has adopted a new dividend policy to regularly distribute surplus cash to shareholders. Based on preliminary analysis, the board believes an additional $20 to $50 per share could be distributed in the future.

"The SINOVAC Board’s acceleration of this payment is to ensure that, regardless of the outcome of the SSM, all valid shareholders will receive the special dividend payment," the company stated in its press release.

The board also committed to holding an annual shareholder meeting in the second quarter of 2026 and authorized exploration of potential listings on the Hong Kong Stock Exchange and other exchanges.

Sinovac Biotech is a China-based biopharmaceutical company focused on developing, manufacturing, and commercializing vaccines against infectious diseases, including COVID-19, hepatitis A, and influenza. The company is scheduled to report earnings on June 18, 2025, with analyst price targets ranging from $0.44 to $4.42. Get deeper insights and exclusive financial metrics with InvestingPro, including over 30 additional key indicators and expert analysis.

In other recent news, Sinovac Biotech Ltd. has faced several significant developments. The company has been urged by Heng Ren Partners, a shareholder, to distribute $8.9 billion to its shareholders and resume trading on NASDAQ. This comes after Sinovac’s substantial revenue growth, notably from $246 million in 2019 to over $19 billion in 2021, largely driven by its CoronaVac vaccine. In a related governance matter, Vivo Capital, another shareholder, has challenged Sinovac’s board over governance and dividend distribution, highlighting a need for transparency and fair dividend payments.

Additionally, Sinovac announced the appointment of Sven H. Borho as a new director and Chair of the Audit Committee, strengthening its board’s oversight capabilities. This appointment follows the resignation of a previous audit chair, indicating ongoing changes in Sinovac’s governance structure. Sinovac also made a routine regulatory filing with the SEC, a standard procedure for foreign companies with U.S.-traded equity, which did not disclose any new financial information. These developments reflect ongoing investor and governance activities surrounding Sinovac, as the company navigates complex shareholder dynamics and compliance obligations.

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