TWTR Twitter Inc

Chinese internet company Sina Corp. on Wednesday said it plans to distribute part of its stake in its social-media unit Weibo Corp. to the web portal company's shareholders.

Sina shares, which have risen 53% this year, rose 4% to $78.50 in recent premarket trading in New York. Weibo's American depositary shares, which have more than doubled in 2016, rose 2% to $48.48 premarket.

The move will reduce Sina's stake in Weibo, which provides a Twitter-like service, to 51% from 54%. Sina's voting power in the microblog company will fall to 75% from 78%.

Sina shareholders will receive one Weibo share for each 10 Sina shares held. Holders of record as Sept. 12 are eligible for the distribution.

Earlier this month, Sina raised its 2016 revenue outlook as it reported better-than-expected results for the second quarter thanks to continued strength at Weibo.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

August 31, 2016 09:45 ET (13:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.