China asks Didi to delist US over data security concerns, sources say By Reuters

by Julie Zhu, Kane Wu and Brenda Goh

SHANGHAI (Reuters) – Chinese officials have called on executives of ride-hailing giant Didi Global to develop a plan to take the company off the U.S. list over data security concerns, two told Reuters. people familiar with the matter.

The Chinese Cyberspace Administration (), the national cyberspace regulator, wants management to take the step for fear of sensitive data leaks, one of the two sources said.

The ACC also wants the Chinese VTC giant to undertake to execute its delisting within a certain period, a prerequisite for the relaunch of Didi’s applications in China, according to the same source.

The proposals under consideration include outright privatization or an issue of shares in Hong Kong followed by delisting in the United States.

In July, just days after the group’s listing on the New York Stock Exchange, the ACC announced that it would withdraw 25 mobile applications from the smartphone application stores operated by the Didi Global group. The regulator also asked him to stop registering new users, citing national security and the public interest.

Didi and the Chinese Cyberspace Administration did not respond to Reuters requests for comment and the sources requested anonymity because they did not allow themselves to speak to the media.

If privatization takes place, shareholders are likely to be offered at least the IPO price of $ 14 per share, as a lower bid so soon after the June IPO could result in lawsuits or disqualification. shareholder resistance, Bloomberg reported, citing sources.

Shares of SoftBank and Tencent, which hold a minority stake in Didi, fell more than 5% and 3.1% respectively.

At the close of the market Thursday, the Didi share had lost 42% to 8.11 dollars since its debut on the stock market last June.

Didi drew the wrath of Chinese authorities when he continued his IPO in New York, after Chinese regulators asked him to suspend it while he carried out a review of the safety of his practices in data, sources told Reuters.

Chinese tech giants come under scrutiny from Beijing over their anti-monopoly behavior and handling of their users’ data, as the government tries to curb their dominance after years of unsuccessful growth. hinders.

(Report Julie Zhu and Kane Wu in Hong Kong, Brenda Goh in Shanghai and Sneha Bhowmik in Bangalore; French version Camille Raynaud and Diana Mandiá, edited by Sophie Louet)

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