China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access systems to China’s rapidly growing digital television market, today announced that its board of directors has declared a special cash dividend of US$1.00 per share on the Company’s ordinary shares, par value US$0.0005 per share.
The special cash dividend is payable on or around February 28, 2009 to shareholders of record as of the close of business on January 8, 2009, U.S. Eastern Standard Time.
“Our board of directors is confident in China Digital TV’s ability to achieve our strategic objectives and believes that a special dividend is an efficient use of our cash to maximize shareholder value at this time,” said Mr. Jianhua Zhu, China Digital TV’s chairman and chief executive officer. “With our industry leadership, strong cash position and long-standing relationships with cable operator clients, we believe we remain well-positioned for long-term growth both organically and through acquisitions.”
As a matter of company policy, China Digital TV will consider declaring and paying dividend at least once every two years, for a given period, subject to the board of directors’ determination that (i) the Company has sufficient profit attributable to shareholders for such period and (ii) the Company’s funding requirements can be fully satisfied if a proposed dividend is declared and paid. In addition, the board of directors of the Company will review and decide whether to revise the Company’s dividend policy, from time to time, in light of the Company’s future operations and earnings, capital requirements and surplus, financial condition, contractual restrictions, general business conditions and other factors as the board of directors may deem relevant.