In the latest development for ride-hailing giant Didi, Chinese regulators have reportedly asked the tech firm to delist from the New York bourse over data security fears.
The Cyberspace Administration of China (CAC) has asked Didi’s management to formulate a plan to delist from the New York Stock Exchange, according to a «Bloomberg» report citing unnamed sources.
This was due to concerns about leakage of sensitive data.
Delisting Deal
Proposals under consideration include the privatization or a share float in Hong Kong after delisting in the U.S.
Under the privatization deal of Didi, shareholders will likely be offered at least $14 per share, corresponding with the IPO price, in order to avoid lawsuits or shareholder resistance.
The new call to delist marks the latest development since the CAC launched a probe against Didi and booted it off of China’s app store after it reportedly urged the tech firm not to list in the U.S.
