Weibo-owner Sina Gets $41 per Share Bid from CEO-controlled company New Wave
Sina Corp., the Chinese technology giant that operates social media platform Weibo, said on Monday it had received a preliminary non-binding go-private offer of $41 per share in cash from New Wave MMXV Limited (New Wave).
New Wave, incorporated in the British Virgin Islands and controlled by Sina’s chairman and CEO Charles Chao, already owns a 12.15% stake in Sina. The company proposes to acquire all outstanding ordinary shares of Sina that it does not already own.
The transaction has an estimated value of about $2.68 billion. Sina’s shares shot up 10.2% after it disclosed the buyout bid.
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Sina has formed a special committee consisting of independent directors Zhang Songyi, Zhang Yichen and Wang Yan to evaluate and consider the offer.
“There can be no assurance that any definitive offer will be made, that any agreement will be entered into, or that this or any other transaction will be approved or consummated,” Sina said in a statement.