BEIJING, Nov. 12, 2012 /PRNewswire/ -- 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 declared a special cash dividend of US$2.30 per share on the Company's ordinary shares, par value US$0.0005 per share. Each of the Company's American depositary shares represents one ordinary share. Shareholders of record as of the close of business on November 26, 2012, U.S. Eastern Standard Time, will be eligible to receive the dividend. This cash dividend is currently expected to be paid in two installments of US$1.00 and US$1.30 on or around December 3, 2012 and February 4, 2013, respectively. Mr. Jianhua Zhu, China Digital TV's Chairman and Chief Executive Officer commented, "Our Board of Directors believes that a special cash dividend is an efficient use of cash to maximize shareholder value. Our balance sheet and cash flow will continue to allow us to invest in the development of industry-leading technologies." In light of the foregoing dividend declaration, the Company has accrued a deferred tax liability related to the undistributed retained earnings of its subsidiaries located in the PRC that will impact the net income attributable to China Digital TV in its unaudited financial results in the three months ended September 30, 2012, which are expected to be announced on November 20, 2012. This is the fourth time that the Company has declared dividends to its shareholders since its initial public offering and listing on the NYSE in 2007. Going forward, China Digital TV's board of directors will continue to evaluate the Company's dividend policy based on various factors, including those relating to shareholder value.
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."