Sina Announces Receipt of Preliminary Non-Binding "Going Private" Proposal
Sina, 7/06/20
Chinese online media company Sina (Nasdaq: SINA) today announced the receipt of a preliminary non-binding proposal letter, dated July 6, 2020, from New Wave MMXV Limited ("New Wave"), proposing to acquire all the outstanding ordinary shares of the company not already owned by New Wave for USD 41 per share in cash in a going private transaction (the "Proposed Transaction"). New Wave is a company incorporated in the British Virgin Islands and controlled by Charles Chao, Chairman and Chief Executive Officer of Sina.
This proposed purchase price represents a premium of approximately 20% to the average closing price of Sina's ordinary shares during the 30 trading days prior to July 6, 2020. The buyer group intends to finance the acquisition with a combination of debt and equity, and expects definitive commitments for the required debt and equity funding, subject to terms and conditions set forth therein, to be in place when the definitive agreements effecting the acquisition are signed.
Sina's board has formed a special committee consisting of independent directors Zhang Songyi, Zhang Yichen, and Wang Yan to evaluate and consider the proposed transaction.
Editor's Note: To read Sina's full announcement, please click here.
Keywords: Wang Yan Charles Chao Internet online media Sina Zhang Yichen M&A delist
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