Scratch another big tech company off the list of Chinese stocks traded in the U.S. Online media conglomerate Sina (NASDAQ:SINA) announced today that it is being taken private by companies affiliated with its CEO, Charles Chao. That group will pay roughly $2.59 billion for Sina's outstanding ordinary shares.

Under the terms of the deal, the investors are handing over $43.30 per share in cash for the Nasdaq-listed stock of the company. That represents a premium of nearly 8% on Sina's closing stock price on Friday.

Man using a smartphone.

Image source: Getty Images.

The company pointed out in the press release trumpeting the deal that the premium climbs to 18% if applied to the share price on July 2. That was the first trading day following its announcement that Chao and his fellow investors were making a play for it. At the time, the proposed share price was $41.

In its announcement, Sina said that the funding for the go-private transaction would come from term loans provided by China Minsheng Bank (OTC:CGMBF), in combination with cash from the buyers.

Sina expects the deal to be completed in Q1 of next year. It must be approved by two-thirds of the company's shareholders; according to Sina, the potential buyers hold roughly 61% of all the stock.

The company owns a portfolio of digital assets. Perhaps the most popular brand in its stable is the short-messaging service provider Weibo (NASDAQ:WB), which has been called the Chinese Twitter.

News of the deal was greeted positively by investors, although they might still be a bit skeptical about it. Sina's shares closed Monday nearly 6% higher, but at $42.55 per share were still some distance from that buyout price.

 
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