Chinese regulators demanded from the DIDI taxi service to develop a leaving plan from the New York Stock Exchange, reports Bloomberg with reference to sources. The publication calls it the “Unprecedented Beijing Request”.
China wants the DIDI leadership to bring the company from the exchange due to concerns about the leakage of confidential data. Beijing considers direct privatization options or accommodation in Hong Kong. In the first case, the company will have to redeem its shares at least at the price of the IPO (primary public placement of shares) at $ 14. This is 72 percent more of their current cost (about eight dollars). Any option will make a serious blow to the service, the publication notes. For example, privatization can cause shareholders discontent and lead to claims against DIDI.
For a new possible threat to Russia’s security from the “Chinese Uber” previously spoke of the Association “National Taxi Council”. She warned President Vladimir Putin’s president that DIDI collects a large amount of data, which, together with geoposition and “unique identification information about a mobile device”, can be interesting for foreign intelligence.
DIDI apps every day 25 million passengers enjoy every day, which makes it the largest taxi call service in the world. Beijing pressure on the company began after IPO on the New York Stock Exchange on June 30. Listing preceded the recommendations of the regulators to postpone placement. The company has attracted $ 4.4 billion, but since then has lost its third market value, since a few days after the IPO, the Chinese authorities accused DIDI in violating the Customer Data Collection Act and deleted applications from virtual stores. Later it became known that the Chinese state company will receive control over DIDI.