BEIJING, June 8, 2017 /PRNewswire/ -- SINA Corporation
(the "Company" or "SINA") (NASDAQ: SINA), a leading online media
company serving China and the
global Chinese communities, today announced the details of its
planned distribution of shares of Weibo Corporation ("Weibo"),
whose ADSs are currently traded on the NASDAQ Global Select Market
(NASDAQ: WB).
Based on 71,421,480 ordinary shares of SINA outstanding as of
the record date of June 7, 2017, SINA
will distribute 7,142,148 Class A ordinary shares of Weibo (the
"Weibo Shares") to SINA shareholders on a pro rata basis, or one
Weibo Share for each ten outstanding
SINA ordinary shares. Holders of SINA ordinary shares that are
settled through DTC will receive Weibo ADSs representing Weibo
Shares.
The distribution date is expected to be July 10, 2017. Following the distribution of the
Weibo Shares, SINA's equity stake in Weibo will decrease from
approximately 49% (or approximately 74% by voting power) currently
to approximately 46% (or approximately 72% by voting power).
We will not distribute any fractional Weibo Shares. The number
of fractional Weibo Shares that would be distributable to each of
the SINA shareholders in the form of Class A ordinary shares will
be rounded to the nearest whole number. Any fractional Weibo ADSs
will be aggregated and sold on behalf of those SINA shareholders
who would otherwise be entitled to receive a fractional Weibo ADS.
Payment for fractional Weibo ADSs will be distributed through
DTC.
No action or payment is required by SINA shareholders to receive
Weibo Shares, whether or not such Weibo Shares are to be
represented by Weibo ADSs. An Information Statement containing
details regarding the distribution of the Weibo Shares will be
provided to SINA shareholders prior to the distribution date.
Investors are encouraged to consult with their financial advisers
regarding the specific implications of buying or selling SINA
ordinary shares on or after the ex-dividend date of June 5, 2017.
The distribution of Weibo Shares or cash in lieu thereof will be
characterized as a taxable dividend for United States federal income tax purposes and
could have adverse tax consequences under the "passive foreign
investment company" provisions of the U.S. Internal Revenue Code of
1986, as amended. You should treat the distribution date of
July 10, 2017 as the date of the
dividend. SINA shareholders are urged to consult with their tax
advisors with respect to the U.S. federal, state, local and foreign
tax consequences of the distribution.
About SINA
We are a leading online media company serving China and the global Chinese communities. Our
digital media network of SINA.com (portal), SINA Mobile (mobile
portal and mobile apps) and Weibo (social media) enables Internet
users to access professional media and user generated content in
multi-media formats from personal computers and mobile devices and
share their interests with friends and acquaintances.
SINA.com offers distinct and targeted professional content on
each of its region-specific websites and a full range of
complementary offerings. SINA.cn and SINA Mobile Apps provide news
information, professional and entertainment content from SINA.com
customized for mobile users in WAP (mobile browser) and mobile
application format. Weibo is a leading social media platform for
people to create, distribute and discover Chinese-language content.
Based on an open platform architecture, Weibo allows users to
create and post feeds and attach multi-media content, as well as
access a wide range of organically and third-party developed
applications, such as online games.
Through these properties and other product lines, we offer an
array of online media and social media services to our users to
create a rich canvas for businesses and advertisers to effectively
connect and engage with their targeted audiences.
Contact:
Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sina-announces-details-of-distribution-of-weibo-shares-300470995.html
SOURCE SINA Corporation