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

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

China’s technical watchdog wants management to remove the company from the New York Stock Exchange due to concerns about leaks of sensitive information, Report said and quoted people who are familiar with the matter.

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

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Proposals under consideration include a direct privatization or a shareholding 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 at the IPO, as a lower offer as soon as possible after the IPO in June could lead to lawsuits or shareholder resistance, the report said, citing sources.

Didi clashed with Chinese authorities when it went ahead with its listing in New York in June, even though the regulator had urged the company to put it on ice while conducting a cyber security review of its computer practices, sources told Reuters.

Shortly afterwards, the CAC launched an investigation into 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 run by Didi.

Didi then responded by saying that they had stopped registering new users and that they would make changes to comply with the rules on national security and protection of personal data as well as 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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