Chinese social media magnate to privatise dominant microblog operator Sina, as US-China tension reaches tipping point
- The non-binding, take-private offer valued Sina at US$2.7 billion
- Privatisation offer came as rising US-China tensions has some Chinese firms rethinking US listings
Sina Corporation, the operator of social media platform Weibo, said late Monday that a company controlled by its chairman offered to take it private, making it the latest US-listed Chinese firm to consider a privatisation offer as rising tensions between the world’s two biggest economies have some companies rethinking their American listings.
The Beijing-headquartered company said the offer was in the form of a “preliminary non-binding” proposal letter dated Monday from New Wave MMXV Limited, a company controlled by Charles Chao, Sina’s chairman and chief executive.
New Wave offered to acquire all of the outstanding shares of Sina for US$41 a share, representing a 20 per cent premium to the company’s average 30-day closing price and valuing the company at about US$2.7 billion.
Shares of Sina rose 10.6 per cent to close Monday at US$40.54 on Nasdaq.
