Report: China asks Didi to delist from US on security fears

Logo of Didi Chuxing is seen at its headquarters building in Beijing, China August 28, 2018. — Reuters pic
Logo of Didi Chuxing is seen at its headquarters building in Beijing, China August 28, 2018. — Reuters pic

BEIJING, Nov 26 ― Chinese regulators have asked top executives of ride hailing giant Didi Global Inc to devise a plan to delist from US bourses on Security fears, Bloomberg News reported.

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

Didi did not respond to a Reuters request for a comment.

Proposals under consideration include a straight up privatisation or a share float in Hong Kong followed by a delisting from the United States, according to the news report.

If the privatization proceeds, the proposal will likely be at least US$14 (RM59.40) IPO price if the privatization proceeds, since a lower offer so soon after the June initial public offering could prompt lawsuits or shareholder resistance, the report said, citing sources. ― Reuters