Sina to go private in $2.6 billion deal with CEO-led business

Platform News: China's Weibo listing on the NYSE

Sina Corp, the owner of social media platform Weibo, will be taken private in a $2.6 billion agreement with CEO Charles Chao, the Chinese internet business said on Monday.

The offer price of $43.3 per share is at an 18% premium on the stock’s closing price on July 2, the previous trading day earlier Sina received the preliminary offer of $41 per share.

US-listed shares of Sina rose more than 6 percent in premarket trading.

Chao’s holding firm, New Wave, is the largest shareholder of Sina, with a 12.15% stake as of July 10, according to Refinitiv-Eikon data.

Most Chinese companies are opting from US stock trades, after rising tensions between the world’s two largest economies, by considering go-private deals or returning to equity markets closer to home.

E-commerce companies Alibaba and JD.com have completed secondary listings in Hong Kong. Others including travel firm Ctrip and Baidu were contemplating Hong Kong listings, Reuters reported earlier this year.

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Sina said Morgan Stanley Asia Ltd is acting as a financial advisor to the particular committee it’d formed to evaluate the proposal.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Munsif Vengattil and Ayanti Bera in Bengaluru. Editing by Arun Koyyur and Anil D’Silva.

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