SINA Corp (NASDAQ:SINA), a leading online media company serving China and the global Chinese communities, 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 ofUS$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. (Original Source)
Shares of Sina Corp. opened today at $44.31 and are currently trading up at $45.5. SINA has a 1-year high of $52.77 and a 1-year low of $31.92. The stock’s 50-day moving average is $40.84 and its 200-day moving average is $37.57.
On the ratings front, Sina Corp. has been the subject of a number of recent research reports. In a report issued on May 15, Piper Jaffray analyst Gene Munster reiterated a Buy rating on SINA, with a price target of $65, which represents a potential upside of 46.7% from where the stock is currently trading. Separately, on the same day, Brean Murray Carret’s Fawne Jiang reiterated a Buy rating on the stock and has a price target of $50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gene Munster and Fawne Jiang have a total average return of 26.4% and 5.6% respectively. Munster has a success rate of 68.5% and is ranked #2 out of 3610 analysts, while Jiang has a success rate of 53.9% and is ranked #1028.
SINA Corp is an online media company and MVAS provider in the People’s Republic of China and for the Chinese communities.