SINA Announces Subscription Agreement With CEO For $456 Mln Cash

(RTTNews) - SINA Corp. (SINA), an online media company serving China and the global Chinese communities, said it has entered into a legally binding subscription agreement with Charles Chao, Chairman of SINA's board of directors and Chief Executive Officer, for the issuance and sale of 11 million newly issued ordinary shares of the company to Chao.

Following the agreement, Chao will subscribe for and purchase directly or through a special purpose vehicle beneficially owned and controlled by him, 11 million newly issued ordinary shares of SINA for a total purchase price of $456 million in cash.

The per share purchase price of $41.49 represents the average closing trading price of SINA's ordinary shares for the 30 trading days ended May 29, and is higher than the closing trading price on May 29, the last trading day before the signing of the subscription agreement.

Chao has agreed to subject all the shares he or his affiliate will acquire in the transaction to a contractual lock-up restriction for six months after the closing.