BEIJING, May 18, 2017 /PRNewswire/ -- China Digital TV
Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the
"Company"), a leading provider of cloud platforms, with gaming and
other applications embedded, to PRC digital television and
telecommunication network operators, today announced that it has
received notice from the New York Stock Exchange ("NYSE") that the
NYSE has suspended trading immediately and commenced proceedings to
delist the Company's American Depositary Shares ("ADS" or "shares")
from the NYSE. Trading of the ADSs was previously halted on
May 16, 2017.
In its decision to commence delisting proceedings, the NYSE
cited Section 802.01D of the NYSE Listed Company Manual, which may
among other reasons prompt delisting when a company has sold or
otherwise disposed of its principal operating assets or has ceased
to be an operating company, alongside an NYSE concern about the
timing and certainty of the Company's special cash dividend of
US$1.50 per ordinary share.
The Company has a right to a review, by a committee of the Board
of Directors of the NYSE, of the NYSE delisting determination. The
Company presently intends to exercise this right and appeal the
NYSE's decision to delist its shares. While the Company does intend
to appeal the determination, it is also now actively seeking other
alternative listing arrangements and will announce those
arrangements once they are finalized.
During the appeal period and as alternative listing arrangements
are put in place, the Company intends to continue to communicate
all material developments to its shareholders through normal
channels, such as SEC filings and press releases.
The Company emphasizes that current shareholder ownership rights
remain in place and all shareholders retain rights of ownership in
China Digital TV. Most
importantly, the Company remains fully focused on and committed to
improving its ongoing operations. As highlighted in the recent
first quarter earnings announcement on May
16, 2017 ("First Quarter Earnings"), the Company is making
progress on increasing users, expanding its geographic footprint,
and further diversifying its content offerings in the cloud
business. Further, the Board of Directors is continuing to review
potential opportunities to acquire new operating businesses or
assets to further enhance operations.
Update on Special Cash Dividend
As announced when the Company reported First Quarter Earnings,
the Board of Directors declared a special cash dividend of
US$1.50 per ordinary share on
April 21, 2017. The aggregate amount
of cash dividend to be paid approximates US$90 million. Shareholders of record as of the
close of business on May 31, 2017,
U.S. Eastern Daylight Time, will be eligible to receive the
dividend. The payment date of this special cash dividend is
expected to be on or about June 15,
2017.
The funds for the dividend, all of which have been received by
the Company, will come from the proceeds previously received from
the Beijing Super TV sale, after certain foreign currency exchange
procedures are completed. So far, the Company's offshore account
has received a portion of the proceeds in US dollars equivalent to
100 million Renminbi. The remaining proceeds are still in the
procedures of currency exchange from Renminbi to US dollars. If the
Company is unable to pay the dividend on June 15, 2017 due to the ongoing foreign currency
conversion procedures, the Company commits to update the market
with a new special dividend payment date as soon as possible.
The Company does not believe the delisting process will impact
the payment of this dividend to shareholders.
About China Digital TV
Founded in 2004, China Digital TV is a leading provider of cloud
platforms, with gaming and other applications embedded, to PRC
digital television and telecommunication network operators,
enabling them to bring these applications to household television
sets and other mobile devices.
For more information please visit the Investor Relations section
of China Digital TV's website at http://ir.chinadtv.cn.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Such forward-looking
statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "may," "should" and
similar expressions. Such forward-looking statements include,
without limitation, statements regarding the outlook and comments
by management in this announcement about trends in the cloud
computing, cable television and related industries in the PRC and
China Digital TV's strategic and operational plans and future
market positions. China Digital TV may also make forward-looking
statements in its periodic reports filed with the Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about China
Digital TV's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from projections contained or implied in any
forward-looking statement, including but not limited to the
following: competition in the cloud computing, cable television and
related industries in the PRC and the impact of such competition on
prices, our ability to implement our business strategies, changes
in technology, the progress of the television digitalization in the
PRC, the structure of the cable television industry or television
viewer preferences, changes in PRC laws, regulations or policies
with respect to the cloud computing, cable television and related
industries, including the extent of non-PRC companies'
participation in such industries, and changes in political,
economic, legal and social conditions in the PRC, including the
government's policies with respect to economic growth, foreign
exchange and foreign investment.
Further information regarding these and other risks and
uncertainties is included in our annual report on Form 20-F and
other documents filed with the Securities and Exchange Commission.
China Digital TV does not assume any obligation to update any
forward-looking statements, which apply only as of the date of this
press release.
For investor and media inquiries, please contact:
China Digital TV Holding Co., Ltd.
Investor Relations
Tel: +86-10-6297-1199 x 9780
Email: ir@chinadtv.cn
ICR, Inc.
Xueli Song
Tel: +1 (646) 328-1950
Email: stv@icrinc.com
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SOURCE China Digital TV Holding Co., Ltd.