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SINA Corporation Announces Completion of $180 Million Private Equity Financing
SHANGHAI, Nov 27, 2009 /PRNewswire-Asia via COMTEX/ --
SINA Corporation (Nasdaq: SINA), a
leading online media company and mobile value-added service provider for China
and the global Chinese communities, today announced that the subscription for
ordinary shares by New-Wave Investment Holding Company Limited ("New-Wave"),
pursuant to the agreement entered into between SINA and New-Wave in September
2009, has been completed. New-Wave is a British Virgin Islands company
established and controlled by Charles Chao, SINA's President and CEO, and
other members of SINA's management. The Company issued and sold to New-Wave,
and New-Wave subscribed for and purchased approximately 5.6 million ordinary
shares of the Company. As a result of New-Wave's subscription, the Company
received gross proceeds of US$180 million, which the Company plans to use for
future acquisitions and general corporate purposes.
"The closing of the $180 million 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," stated Mr.
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 Holdings Limited, 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, Mr. Chao is the
sole director of New-Wave.
About SINA
SINA Corporation (Nasdaq GS: SINA) is a leading online media company and
mobile value-added service provider for China and for the global Chinese
communities. With a branded network of localized websites targeting Greater
China and overseas Chinese, the Company provides services through five major
business lines including SINA.com (online news and content), SINA Mobile
(MVAS), SINA Community (Web 2.0-based services and games), SINA.net (search
and enterprise services) and SINA E-Commerce (online shopping). Together these
business lines provide an array of services, including region-focused online
portals, MVAS, social networking service (SNS), blog, audio and video
streaming, album, online games, email, search, classified listings, fee-based
services, e-commerce and enterprise e-solutions. The Company generates the
majority of its revenues from online advertising and MVAS offerings, and, to a
lesser extent, from search and other fee-based services.
About CITIC Capital Holdings Limited
Founded in 2002, CITIC Capital Holdings Limited is a leading Chinese
alternative investment management and advisory company. The firm manages over
USD2 billion of capital from a diverse group of international and Chinese
investors. Core businesses include Private Equity, Real Estate, Structured
Investment and Finance and Asset Management.
About FountainVest Partners
FountainVest Partners is one of the largest private equity funds dedicated
to investing in China, focusing on private enterprise sector companies led by
strong management teams.
About Sequoia Capital
Sequoia Capital is world's premier venture capital and growth capital
investment firm operating in the United States, China, India and Israel.
Sequoia Capital China was founded in 2005 and currently has more than US$1
billion under management to invest in China's high growth companies.
Safe Harbor Statement
This announcement contains forward-looking statements that relate to,
among other things, SINA's strategic and operational plans. SINA may also make
forward-looking statements in the Company's periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in
its proxy statements, in its offering circulars and prospectuses, in press
releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. SINA assumes no obligation
to update the forward-looking statements in this release and elsewhere.
Statements that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of important factors could cause actual results to differ materially from
those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, SINA's limited operating
history, the uncertain regulatory landscape in the People's Republic of China,
including how the new EIT will be implemented, the changes by mobile operators
in China to their policies for MVAS, the Company's ability to develop and
market other MVAS products, fluctuations in quarterly operating results, the
Company's reliance on online advertising sales and MVAS for a majority of its
revenues, the Company's reliance on mobile operators in China to provide MVAS,
any failure to successfully develop and introduce new products and any failure
to successfully integrate acquired businesses. Further information regarding
these and other risks is included in SINA's Annual Report on Form 20-F for the
year ended December 31, 2008 and its other filings with the Securities and
Exchange Commission.
For more information, please contact:
Cathy Peng
SINA Corporation
Tel: +86-10-8262-8888 x3112
Email: ir@staff.sina.com.cn
SOURCE SINA Corporation
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