Sina Corporation, a leading Chinese online media company and mobile value-added service (MVAS) provider has announced the completion of $180-million private equity financing to boost the operations of China's largest internet portal.
The company yesterday said that the subscription for ordinary shares by New-Wave Investment Holding Company Ltd, following the agreement entered into between Sina and New-Wave in September 2009, has been completed.
New-Wave is a British Virgin Islands-based company established by Charles Chao, Sina's president and CEO, and other members of Sina's management.
Under the terms of the financing agreements, ordinary shareholders of New-Wave mainly consist of Sina's management team, with participation from investment management firm Citic Capital Holdings Ltd, 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. The 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.
Sina's management will put in around $50 million and the three investment firms will provide the remaining roughly $130 million.