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Sina completes USD180m private equity financing

Sina, an online media company and mobile service provider for China and the global Chinese communities, has completed the subscription for ordinary shares by New-Wave Investment pursuant to an agreement signed in September 2009.

New-Wave is a British Virgin Islands company established and controlled by Charles Chao (pictured), Sina’s president and chief executive, and other members of Sina’s management.

New-Wave subscribed for and purchased approximately 5.6 million ordinary shares of Sina. Sina received gross proceeds of USD180m, which it plans to use for future acquisitions and general corporate purposes.

"The closing of the USD180m private equity financing marks a historical moment at Sina. For the first time since its IPO in 2000, the largest shareholder of Sina is a Sina management-controlled entity," says Chao. "I am delighted that all key members of Sina’s management have contributed to the private equity financing, even though participation was purely voluntary. This is a reflection of a strong commitment by our management team to Sina’s future and further aligns the interest of management with Sina’s other shareholders."

Under the terms of the financing agreements, ordinary shareholders of New-Wave mainly consist of Sina’s management team, with participation from alternative investment management firm CITIC Capital, private equity firm FountainVest Partners and private investment partnership Sequoia Capital China, as preferred shareholders. Each of these firms will have the right to nominate one seat to New-Wave’s board. Management has the right to nominate four seats to New-Wave’s board with one vote each or one seat with four votes, equivalent to a controlling interest.

At present, Chao is the sole director of New-Wave.

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