I know some people play DiDi and figured this news was very relevant.
DiDi Plans Shareholder Meeting in May to Vote on U.S. Delisting
DiDi Global Inc. will hold an extraordinary general meeting on May 23 to vote on delisting its shares from the New York Stock Exchange, a sign the ride-hailing giant is heeding Beijing’s call to address concerns about how its data is handled abroad.
The company said in statement on Saturday it won’t apply to sell shares on any other stock exchange before finishing the move in the U.S., adding that it would continue to explore a potential listing on another internationally recognized exchange.
The China Securities Regulatory Commission said in a statement published on its website the same day that DiDi made the decision to delist based on the market and its own situation.
The Chinese government was angered by DiDi’s U.S. listing in mid-2021, and days later launched a cybersecurity probe into the firm and forced its services off domestic app stores. The agency in Beijing responsible for data security was later said to have asked DiDi’s top executives to devise a plan to delist because of concern sensitive data may leak.
Hmm, what does delisting entail?
Will they simply go to OTC? Can’t see the Chinese regulators feeling good about that since they are still on a foreign stock market.
They can’t swap out for HK shares, as they had initially suggested, since they just clarified that they will not do a new listing until the delisting is complete.
That leaves the unlikely option of being paid cash for the shares. What price would folks get? The price the day the votes take place? Or … the IPO price? (gasp!)
Anyone having info on this would be helpful to consider how to play this.
That’s what I’m wondering. The article doesn’t really give any specifics but if I had to bet it seems like they want to close out their US market exposure completely, so no OTC. Settlement prices would be a HUGE wildcard right now, I’m going to guess it will be some sort of calculated average share price over time leading up to delisting.
DIDI gapped down ~25% on news of the delisting, and after a brief period of resistance that closed the gap half way up, has continued falling steadily.
Grabbed some 4/29 2.5P.