Sina May Continue to Spin Off Verticals
China Securities Journal, 9/30/09
Charles Chao, CEO of Chinese internet company Sina (Nasdaq: SINA), has said that Sina may continue to split off its vertical services into separate subsidiary businesses, as it did a year ago when it established a JV with E-House (China) Holdings Limited (NYSE: EJ) for operation of its Sina House real estate service.
With regards to Sina's recent increases in share capital, Chao said that the investors were comprised of Sina senior management and three private investment firms, but he declined to reveal the names of the firms or ratios of shares held. Chao also denied rumors of any shifts in the company's board of directors, and added that transactions on the new share issuance would be completed within one to two months. The firms investing in Sina will also only share in the company's profits, and have not received any managerial voting rights.
Editor's Note: For more background information on this topic, please see "Sina Issues 5.6 Mln New Shares to Senior Management" MD 9/28/09 issue.
Keywords: corporate restructuring Charles Chao Internet E-House JV Sina
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