SINA Announces Agreement with CEO for $456M Cash Investment
SINA Corporation (NASDAQ: SINA) ("SINA" or the "Company"), a leading online media company serving China and the global Chinese communities, today announced that it has entered into a legally binding subscription agreement with Mr. Charles Chao, Chairman of SINA's board of directors and Chief Executive Officer, for the issuance and sale of 11,000,000 newly issued ordinary shares of the Company to Mr. Chao. Pursuant to the agreement, Mr. Chao will subscribe for and purchase directly or through a special purpose vehicle beneficially owned and controlled by him, 11,000,000 newly issued ordinary shares of SINA for a total purchase price of approximately US$456 million in cash. The per share purchase price of US$41.49 represents the average closing trading price of SINA's ordinary shares for the 30 trading days ended May 29, 2015 and is higher than the closing trading price on May 29, 2015, the last trading day before the signing of the subscription agreement. Mr. Chao has agreed to subject all the shares he or his affiliate will acquire in the transaction to a contractual lock-up restriction for six months after the closing. The closing is expected to take place upon satisfaction of customary closing conditions.
*SINA shares rose 23% following the announcement.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.