Special Dividend For Investors Of China Digital TV Holding Co., Ltd. (ADR) (NYSE:STV)
China Digital TV Holding Co., Ltd. (ADR) (NYSE:STV) saw its market valuation shot up by 11.6 percent after the China based application software developer announced pay out of special cash dividend of 50 cents per share, to its shareholders of common stock on 2nd April.
ADR To Be Treated On Par With Common Shares
The board of directors of the provider of CA systems to the Chinese digital media market led by its Chairman of the Board and Chief Executive Officer Jianhua Zhu have decided to pay the out of turn cash dividend to all share holders and the each American depositary share issued by the firm would also be considered as a common share for this exercise.
Move Aimed Towards Increasing Share Holder Value
The share holders on record as of 14th April are to be considered for this payout and the payout date has been fixed for 9th May. In his comments post the announcement, Chairman and CEO Mr. Jianhua Zhu reiterated his boards commitment to sustainably and consistently work towards increasing share holder value, and has been quoted to have said that, “China Digital TV is always looking to provide excellent value to our shareholders and we believe that a special dividend is a prudent use of cash at this time. Our balance sheet and revenue remain strong enough to support our continued focus on R&D and other long-term objectives.”
Strong Financial Fundamentals Drive Dividend Payout Decision
The company press note released through the PR news wire goes on to highlight that the special payout constitutes the 5th time, that the board has paid out dividends since its public trading debut 7 years back. The $205 million market capped China Digital TV Holding Co., Ltd. (ADR) (NYSE:STV) has recorded a cash trench of $79 million for the calendar year 2013, from revenue of $87.16 million and net income of $24.4 million for the same period.