Sinovac Announces Trigger of Shareholder Rights Agreement in Takeover Fight
The move came after the High Court of Justice of Antigua and Barbuda found that “there was a secret plan to take control of the Company.”
Sinovac Biotech Ltd. (Nasdaq: SVA), a biopharmaceutical company based in Beijing, announced late today that its shareholder rights agreement had been triggered by a group of stockholders that own more than 15 percent of the company.
As such, the company said, the board had approved the exchange of rights held by shareholders and the total number of shares outstanding increased to 98.9 million from 71.1 million shares previously. Further, the exchange of rights also included the issuance of 14.6 million new Series B preferred shares.
The move came after the High Court of Justice of Antigua and Barbuda ruled in December that Sinovac's rights agreement was valid and found that "there was a secret plan to take control of the Company," Sinovac said.
Sinovac, which had been seeking to go private through much of last year, more recently has fought a potential takeover effort by a group of dissident shareholders.
The group that amassed the stake in the company included 1Globe Capital LLC, Chiangjia Li, OrbiMed Advisors LLC, and additional shareholders, the company said.
Shares in Sinovac had been halted at the end of the trading day on Friday after Nasdaq officials requested additional information from the company. Sinovac closed at $6.47 per share today, down 2 cents.