Sources revealed that Cao Guowei, chairman of the Chinese social media company listed on the Chinese social media company, and a Chinese investor in China privatized Weibo.The news promoted the stock price of Weibo by 50%on Tuesday.
According to Reuters, sources said that the transaction has a valuation of at least 20 billion US dollars (about S $ 26.9 billion) for the company, and it provides convenience for the exit of the large shareholder Alibaba Group.China has re -listed to achieve higher valuations.
Three sources said that for this privatization transaction, the largest shareholder of the chairman of the chairman, the holding company of the chairman, is formed a consortium with a Shanghai state-owned enterprise.They did not disclose the identity of this state -owned enterprise.
Two of them also said that the consortium hopes to privatize Weibo at a price of 90 to 100 US dollars per share, which is 80%to 100%higher than the average price of $ 50 in the past month.They said that the target of the consortium was to complete the transaction this year.
Weibo issued a statement saying that the news about the chairman Cao Guowei and a state -owned investor are negotiating that the news of the privatization of the company is not true.Cao Guowei informed the company that he had not discussed the company's privatization with anyone.
Weibo and Alibaba did not respond to Reuters further comment requests.Cao Guowei did not respond to the comment request made through the Weibo parent company Sina.
After the above reports were issued, the stock price of Weibo rose more than 50%before the market, and the increase after the opening reduced to a slightly higher than 6%, and the closing of the market rose 6.3%.
The other three sources who understand the situation revealed that these plans originated from Beijing's hopes of Alibaba and its affiliated company Ant Group to strip the media shares held.
Due to confidentiality restrictions, the above sources refused to disclose their names.
According to Reuters in February, Weibo has hired Goldman Sachs, Swiss Credit and CITIC Lyon Securities to arrange for its second listing in Hong Kong in the second half of this year.However, sources said the plan no longer promoted the plan.
According to the annual report of Weibo, as of February, Alibaba holds 30%of Weibo's shares, which is calculated at the closing price on Friday and is worth $ 3.7 billion.
Two sources said the transaction would be convenient for Alibaba's exit.
Sources also said that the plan also reflects China's efforts to strengthen private media and Internet companies.
