Shares of SINA Corp. (Nasdaq: SINA) leaped to nearly a 21-week trading high by midday Monday on it receiving a going-private proposal for $41 per share from New Wave MMXV Ltd.
To evaluate the proposal, the online media firm has set up a special committee including independent directors Songyi Zhang, Yichen Zhang, and Yan Wang, according to SINA’s statement today. The offer made by New Wave is a company led by SINA’s chairman and chief executive officer, Charles Chao. The offer represents a 12% premium from Thursday’s closing price of $36.67 per share.
“The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from New Wave and no decisions have been made with respect to the Company's response to the Proposed Transaction.”
In the last month or so, it’s been a prominent time for Chinese companies listed in the U.S. to either weigh or enter definitive private agreements, as trade tensions have heated up. Among some of the latest Chinese firms to consider going private transactions were Yintech Investment Holdings Ltd. (Nasdaq: YIN) and the plastic and paper products provider Fuling Global Inc. (Nasdaq: FORK). Chinese firms including China's largest online marketplace for classifieds 58.com Inc. (NYSE: WUBA) and the auto solutions provider Bitauto Holding Ltd. (NYSE: BITA) have both struck deals to go private.
Since becoming a publicly-traded company in 2000, SINA’s stock movement has been all over the place. But if you became a shareholder in February 2018, watching SINA trade as high as $124.60 per share, all you can do now is scratch your head. The stock now trades at $40.51 per share with a market capitalization of $2.65 billion.
(Yahoo Finance: SINA)
In the three months through March, SINA’s Non-GAAP revenues were $432.4 million, down 8% year-over-year on adjusted earnings of 25 cents per share. However, the results crushed Wall Street estimates of $387.9 million in revenues on a profit of 7 cents per share. The company also owns a majority stake in Weibo Corp., (Nasdaq: WB) which is known as the Twitter of China.
Shares of SINA are down 3% year-to-date.