Weibo-owner Sina Gets Buyout Bid At 12% Premium From CEO-led Entity

Sina Corp, the owner of social media platform Weibo, said on Monday it had received a go-private offer of $41 per share in cash from a holding company led by its Chief Executive Officer Charles Chao.

The transaction stands at a value of about $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 a 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. U.S.-listed shares of the Chinese online media company were up about 9% in early trading.

Last month, online classifieds 58.com Inc and car comparison website Bitauto Holdings Ltd also agreed to be taken private.

Reuters