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Softbank’s stock price falls as China’s Didi calls for delisting from the US: Report

The mobile phone in front of the app logo shown in this illustrated photo taken on July 1, 2021 will display the navigation map of the Chinese ride hailing giant Diddy’s app.

Florence Law | Reuters

Guangzhou, China — SoftBank shares expanded losses on Friday after Chinese regulators reported that Chinese regulators had requested Diddy executives to develop a delisting plan from the United States.

Japanese SoftBank stocks fell 4.77% during the lunch break. SoftBank Vision Fund has owned more than 20% of Didi since its listing in the United States.

According to Bloomberg’s report, regulators are hoping to delist Didi from the New York Stock Exchange, a major Chinese ride-hailing service, due to concerns about leaks of sensitive data. The news agency quoted people familiar with the issue who asked not to be identified because of the confidentiality of the issue.

According to the report, China’s Cyberspace Administration has asked Diddy to consider details of delisting that require government approval.

According to the report, Didi may go privatized or listed in Hong Kong after being delisted in the United States.

According to Bloomberg, privatization is an IPO price of $ 14 per share when the company goes public, and Hong Kong floats are likely to be discounted more than Diddy’s shares were traded in the United States.

Diddy refused to comment on the report.

State-led delisting will be an unprecedented move, but highlights Beijing’s continued push to govern tech giants and put them under tighter regulation. Especially Diddy is a special case. Immediately after the June IPO in the United States, regulators launched a cybersecurity review on the company.

Diddy is reportedly angry with regulators by promoting an IPO without resolving the unresolved cybersecurity issues that authorities wanted to resolve. Didi is China’s largest ride-hailing app, holding a lot of data about travel routes and users.

https://www.cnbc.com/2021/11/26/chinas-didi-asked-to-delist-from-us-softbank-shares-fall-report.html Softbank’s stock price falls as China’s Didi calls for delisting from the US: Report

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