China asks Didi to delist from US due to security fears – Bloomberg News

SHANGHAI, Nov. 26 (Reuters) – Chinese regulators have asked top executives of ride-highiling giant Didi Global Inc (DIDI.N) to devise a plan to delist from US stock markets for fear of data security, Bloomberg News reported.

China’s tech watchdog wants management to remove the company from the New York Stock Exchange due to concerns about leaking sensitive data, the report said, citing people familiar with the matter.

Didi and the Cyberspace Administration of China did not respond to Reuters’ requests for comment. The shares of SoftBank Group Corp (9984.T), which has a minority stake in Didi, fell more than 5%.

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The proposals under consideration include a direct privatization or a stock exchange in Hong Kong followed by a delisting from the US, according to the news report.

If privatization continues, shareholders are likely to be offered at least $ 14 per share. share listing price, as a lower offer so shortly after the listed public offering in June could lead to lawsuits or opposition from shareholders, the report states, citing sources.

Didi encountered the Chinese authorities when it pressed with its listing in New York in June, even though the regulator had urged the company to put it on hold while a cybersecurity review of its data practices was conducted, sources told Reuters.

Shortly afterwards, the CAC launched a study on Didi regarding its collection and use of personal data. It said data had been collected illegally, and ordered app stores to remove 25 mobile apps powered by Didi.

Didi responded at the time by saying that it had stopped registering new users and would make changes to comply with the rules on national security and privacy and would protect users’ rights.

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Reporting by Brenda Goh in Shanghai and Sneha Bhowmik in Bengaluru; Edited by Arun Koyyur and Sam Holmes

Our standards: Thomson Reuters Trust Principles.

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