Sina, an online media company and mobile value-added service provider for China and global Chinese communities, has entered into a definitive agreement for a private equity placement of its ordinary shares with New-Wave Investment.
New-Wave is a British Virgin Islands company established and controlled by Charles Chao, Sina’s chief executive officer, and other members of Sina’s management.
At the closing, Sina will receive gross proceeds of USD180m, and New-Wave will receive approximately 5.6 million ordinary shares in Sina.
The closing of the financing is subject to customary conditions. The shares issued to New-Wave will be subject to a six month lock-up and will have customary registration rights pursuant to a Registration Rights Agreement entered into between Sina and New-Wave.
Sina expects to use the proceeds of the financing for future acquisitions and general corporate purposes.
"We are pleased to have entered into this significant private placement, which will enhance Sina’s liquidity position and ability to execute on strategic undertakings. This management-lead investment is a vote of confidence in SINA prospects and strategy," says Yan Wang, chairman of Sina.
"I am honoured to be given the opportunity to lead this investment in Sina with my management team. This investment is a reflection of management’s strong commitment to Sina’s future and ties our interest to the rest of the shareholders even closer, while increasing the company’s cash reserve for both operational and strategic needs," adds Chao.
