New York investment manager Aristeia targets Sina in proxy battle
Aristeia is proposing two nominees to Sina’s board, who Sina claim would pursue a risky short term strategy
New York-based investment manager Aristeia Capital has launched a proxy battle against Chinese internet company Sina, following what it described as years of corporate governance shortcomings.
Aristeia proposed that two of its nominees be added to the company’s board, and made a number of suggestions for increasing the company’s value, including a sale or merger of Sina. Sina rejected these suggestions.
In its statement issued late Monday in the US, the investment manager said that Sina did not meet standards expected of a US-listed public company with respect to the number, tenure, true independence and classification of board members. It also said that the board had approved and sometimes had participated in unnecessary share issuances to Charles Chao, Sina’s chief executive and chairman, and others.
Aristea claimed that to remedy these issues it would nominate two candidates for election to Sina’s board at its annual general meeting.
Aristeia’s two nominees are Thomas Manning, former chief executive of Capgeminia Asia Pacific, and Brett Krause, managing partner of angel investor fund PurpleSky Capital.