BEIJING, Dec. 29, 2011 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, today announced that the payment of a special cash dividend (the "Dividend") to its shareholders, initially scheduled to be made on or around December 30, 2011, will be postponed as regulatory approval by the foreign exchange authority in China for the repatriation of U.S. dollars relating to the Dividend is still pending. On May 20, 2011, the Company announced a special cash dividend of US$0.56 per share on the Company's ordinary shares, par value US$0.0005 per share. Shareholders of record, including holders of the Company's American Depository Shares ("ADSs"), as of the close of business on June 20, 2011, U.S. Eastern Daylight Time, are eligible to receive the Dividend. The record date for the Dividend is not affected by the postponement. The total amount of the Dividend is US$33.421 million. As of September 30, 2011, China Digital TV had cash and cash equivalents, restricted cash and bank deposits maturing over three months totaling US$231.0 million. "This is a routine approval process, which, however, has been slower than we had anticipated," said Mr. Zhenwen Liang, China Digital TV's Chief Financial Officer. "We apologize for the inconvenience to our shareholders and will announce a new payment date as soon as practicable." Safe Harbor Statements This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
China Digital TV Holding (STV) rose on Wednesday after the company declared a special cash dividend of 50 cents a share on its ordinary shares. Each of China Digital's American Depositary Shares (ADS) represents one ordinary share. Shareholders of record as of the close of business on April 14 will be eligible to receive the dividend, which should be paid on or around May 9. This is the fifth time the company has declared a dividend since its IPO in 2007. "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," said Chairman and CEO Jianhua Zhu in a statement. "Our balance sheet and revenue remain strong enough to support our continued focus on R&D and other long-term objectives."