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”) and currently one of the Company’s five largest shareholders, owning approximately 3 million shares, today commented on Sina’s announcement of preliminary voting results for the 2017 Annual Meeting of Shareholders (“Annual Meeting”).
Robert H. Lynch, Jr., Partner, Aristeia Capital, L.L.C., said, “While we are disappointed by this outcome, we are extremely encouraged by the fact that the majority of independent, non-insider shareholders voted to support at least one of our nominees and our case for change – underscoring the need for new voices in the Sina boardroom to help improve corporate governance and reduce or eliminate the Company’s massive valuation discount. Shareholders have sent a strong message to the Company that change is needed and that the status quo is unsustainable and unacceptable.
We would like to express our sincere gratitude to all Sina shareholders who spent the time to engage with us, to thoroughly evaluate our campaign materials, and to vote for our highly-qualified nominees. We are also grateful to all three proxy voting advisory firms, Institutional Shareholder Services (“ISS”), Glass, Lewis and Co. (“Glass Lewis”) and Egan-Jones Rating Company (“Egan Jones”), who each endorsed Aristeia’s views. Thank you to Thomas Manning and Brett Krause for their willingness to serve as nominees and for their hard work and commitment in this contest. It is unfortunate that their skills, experience and perspectives will not be represented on Sina’s Board at this time.
The bottom line is that Sina’s poor corporate governance, lack of substantive engagement with its shareholders and substantial valuation discount need to be addressed. We believe that by highlighting the tremendous value trapped within Sina today, we have changed both how shareholders perceive the Company and what they should expect going forward. The fact that this contest was close – and that its outcome could have been different if the vote of any single, material shareholder had changed – should send a clear message to Sina that its shareholders’ patience will not be infinite. We will continue to pursue all avenues – including, if they are willing to engage with us, by working directly with Sina’s leaders – to further the goals of maximizing shareholder value and enhancing corporate governance that we began with this contest.”
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.
Any views expressed herein represent the opinion of Aristeia, whose analysis is based solely on publicly available information. No representation or warranty is made as to the accuracy or completeness of any information contained therein and Aristeia disclaims all liability based on such information. The information contained herein does not recommend the purchase or sale of any security nor is it an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information contained herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice. Past performance is not indicative of future results. Aristeia has neither sought nor obtained the consent from any third party to use any statements or information contained herein that have been obtained or derived from statements made or published by such third parties. Any such statements or information should not be viewed as indicating the support of such third parties for the views expressed herein.