Chinese internet giant Sina digs in over proxy battle with US shareholder Aristeia
Acrimonious dispute between the Chinese internet firm and US investment manager looks unlikely to be resolved outside the company’s AGM
The acrimonious proxy battle between Chinese internet company Sina and one of its major shareholders, US investment manager Aristeia Capital, is looking more like it will have to be resolved in a vote at Sina’s annual general meeting (AGM), with no indications a compromise is in sight.
Sina owns a major stake in social media firm Weibo, as well as operating mobile and desktop internet portals, and is listed on Nasdaq.
Last week both Sina and Aristeia sent strongly worded letters to Sina’s shareholders urging them to back their respective nominees at next month’s AGM, while each party also came close to accusing the other of lying.
The case is illustrative of the growing number of shareholder fights taking place in Asia.
“While it’s not entirely impossible that there could be a settlement, it feels like the situation is going to have to be resolved by a vote at the AGM,” said a person familiar with Sina and Aristeia’s dispute, who requested anonymity as they were not permitted to speak publicly on the issue.
Sina’s AGM will take place on November 3 in Hong Kong, when shareholders will vote on whether to accept the addition of two nominees from Aristeia to Sina’s board. They will also vote on whether to reappoint Zhang Yichen, one of Sina’s existing board members who is up for re-election, and backed by the other four current directors.