GREENWICH, Conn.--(BUSINESS WIRE)--Aristeia Capital, L.L.C. (collectively with Aristeia Master, L.P. and certain other affiliates, “Aristeia” or “we” or “us”), a long-term investor in Sina Corporation (NASDAQ:SINA) (“Sina” or the “Company”), today commented on Sina’s announcement of changes to the Company’s shareholding structure.
Robert H. Lynch, Jr., Partner, Aristeia Capital, L.L.C., said, “We are extremely disappointed by the shocking action of Sina’s Board of Directors (the “Board”) to issue 7,150 newly created Class A Preference Shares with 10,000 votes per share in a related-party transaction to a holding company controlled by Sina’s Chairman and CEO, Charles Chao. The transfer of effective voting control of a company with a market capitalization greater than $7 billion to a 12 percent shareholder and corporate insider for a mere $7,150 is a blatant corporate governance failure designed to further entrench Sina’s Board and management at the expense of all non-insider shareholders of the Company. By disenfranchising all independent Sina shareholders, this Board has again demonstrated exactly the type of decision-making that initially concerned us and led to our recent proxy campaign. We are actively and thoroughly reviewing all options available to address this injustice and to protect our substantial investment in Sina.”
Aristeia Capital, L.L.C. (“Aristeia”) is a global investment manager with a twenty-year track record of executing fundamentally based strategies across the capital structure. Founded in 1997, Aristeia aims to achieve superior, risk-adjusted returns for an investor base that includes pension plans, endowments, foundations, other institutions and private clients. The firm’s approximately 50 employees are split between its Greenwich, Connecticut headquarters and a New York City office.
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