SINA Corporation, a leading online media company and value-added information service provider in China, announced that it has entered into a definitive agreement with the British Virgin Islands-registered company New-Wave Investment Holding Company Limited, established and controlled Sina’s CEO and other company’s managers.
The companies have agreed upon a private equity placement of Sina’s ordinary shares with the BVI company. At the closing of the transaction, Sina will receive gross proceeds of USD 180 mln, and New-Wave will receive approximately 5.6 mln ordinary shares in Sina. Sina expects to use the financing proceeds of share placement for general corporate purposes and future acquisitions. By words of Yan Wang, Chairman of Sina, this private placement “will enhance Sina’s liquidity position and ability to execute on strategic undertakings.”
The closing of the financing is subject to customary conditions. The shares issued to the BVI company will be subject to a six month lock-up, and will have customary registration right pursuant to a Registration Rights Agreement entered into between Sina and New-Wave.