© Reuters. Sina Weibo’s booth is pictured at the GMIC in Beijing
(Reuters) – Sina Corp (O:), owner of social media platform Weibo (NASDAQ:), will be taken private by a holding company led by Chief Executive Officer Charles Chao in a $2.6 billion deal, the Chinese internet company said on Monday.
The offer price of $43.3 represents an 18% premium to stock’s close on July 2, the last trading day before Sina received the preliminary offer of $41 per share.
Chao-controlled holding company, New Wave, owns a 12.15% stake in Sina as of July 10 and is the largest shareholder of the company, according to Refinitiv-Eikon data.
Interest in Chinese take-private deals has been rising following tensions between China and the United States, with several companies considering whether to keep a New York listing or move instead to Shanghai, Shenzhen or Hong Kong.
The U.S.-listed shares of Sina were up about 8% in premarket trading.
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