Sinovac Biotech activates 'poison pill' defenseStaff Writer | February 24, 2019
Sinovac Biotech, a Nasdaq-listed Chinese vaccine developer, activated a shareholders rights plan, according to a press release seen by Reuters.
America Sinovac’s decision will result in the issuance of 28 million new shares
They have sought to take over the company’s board along with a Chinese subsidiary of Sinovac.
While companies occasionally threaten to use poison pill defenses, they rarely proceed.
Sinovac’s decision will result in the issuance of 28 million new shares that will collectively dilute the investment firms’ holdings to about 25 percent of the company’s voting stock.
In the press release, which has not yet been made public, Sinovac said its board determined that 1Globe Capital, Chiangjia Li and OrbiMed Advisors met the triggering threshold of the poison pill because they own more than 15 percent combined of stock and conspired to take over the company’s board ahead of a February 2018 shareholder meeting.
The dissident shareholders can decide to challenge the board’s decision in Antigua, where Sinovac is incorporated, or in Delaware, which governs shareholder rights contracts. ■