Sina Completes Management Buy-Out

Netease Tech, 11/27/09

Chinese internet company Sina (Nasdaq: SINA) has announced that it has completed its issuance of USD 180 mln in shares to New-Wave Investment Holding Company Limited, a company established and controlled by Sina senior executives. Sina plans to use the funds for possible acquisitions as well as in daily operations.

According to documents from the transaction, the main shareholders of New-Wave's common stock are composed of members of Sina's management team, while CITIC Capital, Sequoia Capital and Fountainvest Partners are the three holders of New-Wave's preferred shares. The three private funds are entitled to one seat each on New-Wave's board of directors, while Sina management is entitled to four seats on the board, thereby giving it control over the company. At present, Sina CEO Charles Chao is the sole director on New-Wave's board. A bank also provided USD 58 mln in backing for the buyout.

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