Chinese online media company Sina Corporation says that it has received the USD180 million it needs for future acquisitions and growth.
The subscription for ordinary shares by New-Wave Investment Holding Company Limited, 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.
Sina previously issued and sold to New-Wave, and New-Wave subscribed for and purchased approximately 5.6 million ordinary shares of Sina. As a result of New-Wave's subscription, Sina received gross proceeds of USD180 million, which the company plans to use for future acquisitions and general corporate purposes.
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.