SINA Adopts Continuation Of Its Previous Shareholder Rights Plan - Quick Facts

(RTTNews) - Online media company SINA Corp. (SINA) said it has adopted a continuation of its previous shareholder rights plan.

The company adopted the Continued Rights Plan to preserve the long-term value of the company in the event of a potential takeover that appears to the Board of Directors to be coercive or unfair or otherwise not in the best interests of the company and its shareholders.

Initially, the rights to purchase ordinary shares of the company, to be called rights, will be represented by the company's ordinary share certificates, will not be traded separately from the ordinary shares and will not be exercisable.

The rights will become exercisable only if a person or group obtains ownership of 10 percent or more of the company's ordinary shares or enters into an acquisition transaction at which time each right will enable the holder of such right to buy additional ordinary shares of the company.

Following the acquisition of 10 percent or more of the company's ordinary shares, the holders of rights will be entitled to purchase from the company ordinary shares at half price. In the event of a subsequent acquisition of the company, the holders will be entitled to buy ordinary shares of the acquiring entity at half price. The exercise price of each right is $150, subject to adjustment.

Generally, the company may redeem the rights for $0.001 per right, subject to adjustment, or terminate the Continued Rights Plan at any time before the acquisition by a person or group of 10 percent or more of the company's ordinary shares.