Chinese internet giant Sina revokes US shares in a $ 2.6 billion deal

Chinese internet giant Sina Corp has announced plans to remove its US shares and go private, making it the last to pull out of the country’s stock markets as relations between Beijing and Washington tighten.

Sina, which owns the hugely popular Twitter-like Weibo site in China, will cease trading on the tech-rich Nasdaq where it has operated since 2000 after its board of directors agreed to a merger with a group run by its chief executive. the company at $ 2.59 billion.

The move comes as a growing number of Chinese companies have withdrawn from the United States or opted for domestic secondary lists as the two world superpowers clash over a range of issues including technology, Hong Kong and the virus.

The US is considering imposing stricter rules on publicly traded companies in the country to open their audit documents to US accountants, which could lead to the expulsion of Chinese companies. And this could push them towards Hong Kong or Shanghai.

New York-trading e-commerce giants Alibaba and JD.com launched huge deals in Hong Kong last year, while Alibaba’s financial arm is planning a mega double IPO in the two cities.

And SMIC, China’s leading chip maker, canceled the listing in June. This week the United States imposed new export restrictions on the beleaguered producer, affecting its Hong Kong shares.

Donald Trump has already limited the amount of business US companies can do with telecommunications like Huawei, while he insisted that the Chinese parent company of the popular TikTok video app sell its US operations to an American company, citing problems. safety.

The Sina deal will see it merge with New Wave MMXV Ltd., a Cayman Islands-registered company controlled by Sina CEO Charles Chao, according to a statement released Monday.

The deal sees New Wave pay $ 43.30 per share, an improvement on the $ 41 offered in June.

The merger is expected to close during the first quarter of 2021, the company said.

lxc / rox / dan

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