Media reports claim that Didi is considering going private to placate Chinese regulators and compensate investors for losses.
Didi is in discussions with bankers, regulators and key investors about how to resolve its regulatory troubles since listing, according to a «Wall Street Journal» report citing unnamed sources.
One of the options considered involves a tender off for the publicly traded shares.
The Cyberspace Administration of China (CAC) is supportive of the privatization plan in principle, the report said, though top shareholder SoftBank Group is unlikely to help fund the deal.
Potential Penalty
Didi faces unprecedented regulatory pressures with reports claiming that its decision to push ahead with its New York listing despite CAC’s suggestion against the move is being viewed as a challenge to Beijing’s authority.
Potential penalties being considered include fines, suspension of certain operations, the introduction of a state-owned investor or even a forced de-listing.
Didi’s share price surged by as much as 49 percent before losing some of the gains after its social media account said the reports about its privatization were untrue.
