China asks Didi to delist in US, Bloomberg News reports – 11/26/2021 at 7:20 am

SHANGHAI (Reuters) – Chinese authorities have asked executives of ride-hailing giant Didi Global to develop a plan to delist the company in the United States over data security concerns, Bloomberg News reported.

China’s technology watchdog wants management to take the company off the New York Stock Exchange over concerns about sensitive data leaks, the report said, citing people familiar with the matter.

Didi and the Chinese Cyberspace Administration did not respond to Reuters requests for comment. Shares of SoftBank, which has a minority stake in Didi, fell more than 5%.

Proposals under consideration include outright privatization or an equity issue in Hong Kong followed by delisting in the United States, according to the report.

If privatization takes place, shareholders will likely be offered at least the IPO price of $ 14 per share, as a lower bid so soon after the June IPO could result in legal action or the shareholder resistance, the report said, citing sources.

Didi drew the wrath of Chinese authorities when he continued his IPO in New York in June, after Chinese regulators asked him to suspend it while he carried out a cybersecurity review of his. data practices, sources told Reuters.

(Report Brenda Goh and Sneha Bhowmik; French version Camille Raynaud)

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