SunLink Health Systems declares special dividend amid pending merger vote

Published 18/07/2025, 19:54
SunLink Health Systems declares special dividend amid pending merger vote

SunLink Health Systems, Inc. (NYSE American:SSY) announced Friday that its board of directors has declared a special cash dividend of $0.10 per share for holders of its common stock. According to a statement based on the company’s SEC filing, shareholders of record as of the close of business on Tuesday, July 29, 2025, will be eligible to receive the dividend, which is scheduled to be paid on July 30, 2025.

The special dividend is being issued in connection with the company’s proposed merger with Regional Health Properties, Inc., as outlined in an amended and restated merger agreement first announced in January 2025 and revised on April 14, 2025. Under the terms of the agreement, SunLink will merge with and into Regional Health Properties, with Regional surviving the merger.

The agreement allows SunLink to pay one or two special cash dividends to its shareholders, with the total amount not to exceed $1,000,000, subject to adjustments defined in the merger terms. The dividend announced Friday is part of this arrangement. InvestingPro data shows the company maintains a strong financial position with a current ratio of 3.91, indicating ample liquidity to support the dividend payment.

The payment of the special dividend is contingent on several factors. The board of directors has reserved the right to revoke or postpone the dividend if the merger is not approved by SunLink shareholders at a special meeting scheduled for July 29, 2025, if the merger agreement is terminated or amended, or if the termination date is extended.

Completion of the merger remains subject to customary closing conditions, including approval by shareholders of both companies, regulatory clearances, and the effectiveness of Regional’s registration statement with the U.S. Securities and Exchange Commission. The agreement also requires that shares to be issued in the merger be authorized for trading or listing on an appropriate exchange.

This information is based on a press release statement included in SunLink Health Systems’ recent filing with the SEC.

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