BEIJING – Chinese internet giant Sina Corp has announced plans to delist its US shares and go private, making it the latest to withdraw from the country’s stock markets as relations between Beijing and Washington sour.
Sina, which owns the hugely popular Twitter-like Weibo in China, will cease trading on the tech-rich Nasdaq – where it has traded since 2000 – after its board agreed to a merger with a group run by its chief executive that values the firm at US$2.59 billion (RM10.79 billion).
The move comes as a growing number of Chinese companies have delisted from the US or opted for secondary, domestic listings as the world’s two superpowers butt heads over various issues, including technology, Hong Kong and Covid-19.
The US is considering plans to impose stricter rules on firms listed in the country to open up their audit papers to American accountants, which could lead to Chinese companies forced out. And, that could push them towards Hong Kong or Shanghai.
E-commerce giants Alibaba and JD.com, which are traded in New York, have launched huge offerings in Hong Kong in the past year, while Alibaba’s financial arm is planning a mega dual initial public offering in the two cities.
And, China’s leading chipmaker, SMIC, delisted in June. This week, the US slapped new export restrictions on the beleaguered manufacturer, battering its Hong Kong stocks.
President Donald Trump has already limited the amount of business US firms can do with telecoms titan Huawei, and insisted that the Chinese parent company of popular video app TikTok sell its US operations to an American company, citing security concerns.
The Sina agreement will see it merge with New Wave MMXV Ltd, a Cayman Islands-registered firm controlled by Sina CEO Charles Chao, according to a statement posted yesterday.
The deal sees New Wave paying US$43.30 per share, an improvement on the US$41 offered in June.
The merger is expected to close during the first quarter of next year, said the company. – AFP, September 29, 2020
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