Weibo owner Sina gets buyout bid at 12% premium from CEO-led company

06 Jul 2020 / 23:57 H.

BENGALURU: Sina Corp, the owner of social media platform Weibo, said today it had received a go-private offer of US$41 (RM175.5) per share in cash from a holding company led by its CEO Charles Chao.

The transaction stands at a value of about US$2.7 billion, according to Reuters calculations based on the current outstanding shares and represents a premium of nearly 12% as of Thursday's stock closing price.

New Wave, which is controlled by Chao, already owns 12.15% stake in Sina, according to Refinitiv-Eikon data.

The interest in Chinese take-private deals has been rising following tensions between China and the United States, with several companies considering whether to keep a New York listing or move instead to Shanghai, Shenzhen or Hong Kong.

Sina said in a statement that its board had formed a special committee consisting of independent directors to evaluate the proposed deal. US-listed shares of the Chinese online media company were up about 9% in early trading.

Last month, online classifieds Inc and car comparison website Bitauto Holdings Ltd also agreed to be taken private. – Reutefrs

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