China asks Didi to delist from U.S. on security fears

© Reuters. FILE PHOTO: The app logo of Chinese ride-hailing giant Didi is seen through a magnifying glass on a computer screen showing binary digits in this illustration picture taken July 7, 2021. REUTERS/Florence Lo/Illustration

(Reuters) -Chinese regulators have asked top executives of ride hailing giant Didi Global Inc to devise a plan to delist from U.S. bourses on Security fears, Bloomberg News reported.

China's tech watchdog wants the management to take the company off the New York Stock Exchange on concerns about leakage of sensitive data, the report https://www.bloomberg.com/news/articles/2021-11-26/china-is-said-to-ask-didi-to-delist-from-u-s-on-security-fears?sref=ZoyErlU1 said, citing people familiar with the matter.

Didi did not respond to a Reuters request for a comment.

Proposals under consideration include a straight up privatization or a share float in Hong Kong followed by a delisting from the United States, according to the news report.

If the privatization proceeds, the proposal will likely be at least $14 IPO price if the privatization proceeds, since a lower offer so soon after the June initial public offering could prompt lawsuits or shareholder resistance, the report said, citing sources.

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