SINA - SINA's Retreat From the Nasdaq Will Hurt U.S. Investors
SINA 's (NASDAQ: SINA) stock recently rallied after the Chinese tech company agreed to be taken private by New Wave Holdings, a company controlled by SINA's CEO Charles Chao, in a $2.59 billion deal. SINA's investors will receive $43.30 in cash per share after the deal closes, representing a higher offer than New Wave's initial bid of $41 per share in early July, and the stock will be delisted from the Nasdaq .
SINA's go-private deal might seem reasonable given the escalating trade tensions and the passage of a U.S. Senate bill that could delist U.S.-listed Chinese companies unless they comply with new regulations. But it will likely hurt SINA's American investors since it significantly undervalues the company and casts a dark cloud over other U.S.-listed Chinese companies with similar ownership structures.
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SINA's Retreat From the Nasdaq Will Hurt U.S. Investors