Weibo-owner Sina gets buyout bid at 12% premium from CEO-led company

[BEIJING] Sina Corp, the owner of media social platform Weibo, said on Monday it had received a go-private offer of US$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 US$2.7 billion, according to Reuters calculations based on the current outstanding shares and represents a premium of nearly 12 per cent as of Friday's stock closing price.

New Wave, which is controlled by Mr Chao, already owns 12.15 per cent 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. US-listed shares of the Chinese online media company were up about 9 per cent in early trading.

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

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REUTERS