SINA Corporation (NASDAQ: SINA) reported entry into an agreement and Plan of Merger with New Wave holdings Limited and New Wave Merger sub Limited where the Parent will acquire all of the company’s outstanding ordinary shares not currently owned by Parent and its affiliates for cash, anticipating an equity value of the Company at USD 2.59 Billion for all ordinary shares. Parent is a wholly owned subsidiary of New Wave MMXV Limited.
Pursuant to the Merger Agreement, at the effective time of the Merger, each Ordinary Share issued and outstanding will be cancelled and cease to exist in exchange for the right to receive USD 43.30 cash per ordinary share. The consideration of the merger per share represents a 18.1% premium to the closing price of the Company’s shares on July 2nd, 2020.
The Merger Consideration will be funded through numerous committed term loan facilities obtained by New Wave from China Minsheng Banking Corp., Ltd. And cash contribution by the Chairman and New Wave. The board of directors of the company, due to unanimous recommendation of a committee of independent directors that was established by the Board have approved the Merger Agreement and the Merger which resolved to recommend the Company’s shareholders vote to authorize and approve the Merger Agreement and the Merger.