China’s Didi asked for delisting from US, SoftBank shares fall: Report

Author: | Posted in World News No comments

A navigation map of the app for the Chinese riding greeting giant Didi can be seen on a mobile phone in front of the app logo shown in this illustration taken on July 1, 2021.

Florence Lo | Reuters

GUANGZHOU, China – Shares in SoftBank extended its losses on Friday after Bloomberg reported that Chinese regulators have asked Didis executives to formulate a plan to delist from the United States

The SoftBank share in Japan fell 4.77% during the lunch break. SoftBank’s Vision Fund owned more than 20% of Didi after its listing in the United States.

Bloombergs The report said that regulators want the Chinese travel giant Didi to be delisted from the New York Stock Exchange due to concerns about leaks of sensitive information. The news agency quoted people familiar with the case as asking not to be identified due to the sensitivity of the case.

The Cyberspace Administration in China has asked Didi to prepare the details of a delisting that will be subject to government approval, the report said.

Didi can either go for a privatization or a stock exchange listing in Hong Kong after delisting in the US, the report said.

A privatization would be at a listing price of $ 14 per share when the company was listed, while a listing in Hong Kong would likely have a discount on what Didi’s shares were traded for in the US, according to Bloomberg.

Didi declined to comment for comment.

A state delisting would be an unparalleled move, but highlights Beijing’s continued efforts to rule in technology giants and put them under stricter rules. Didi in particular is a special case. Shortly after that IPO in the US in June, regulators opened a cybersecurity review of the company.

Didi reportedly aroused the anger of the regulators by pushing for a stock exchange listing without resolving outstanding cybersecurity issues that the authorities wanted to resolve. Didi is China’s largest travel app and contains lots of data on itineraries and users.

.

Add Your Comment

Your email address will not be published. Required fields are marked *