Sina Sells Shares to Chao's V.I. Holding Company

Sina Corp., an operator of Chinese language Web sites, said Friday it has completed the sale of 5.6 million shares for $180 million to a Virgin Islands holding company.

New-Wave Investment Holding Co. Ltd., a British Virgin Islands company, was established and is controlled by Charles Chao, Sina’s president and CEO, and other members of Sina’s management.

Sina, based in Shanghai, said it will use the proceeds for acquisitions and general corporate purposes.

Under the terms of the financing agreements, shareholders of New-Wave are primarily among Sina’s management team, with participation from alternative investment management firm CITIC Capital Holdings Ltd., private equity firm FountainVest Partners and private investment partnership Sequoia Capital China as preferred shareholders.

Shares rose 6 cents to $44.72 in midday trading.

11/27/2009 12:31 PM HARTFORD, Conn. (AP)