A majority of ride-hailing company Didi Global’s shareholders have voted in favor of a plan to delist the company’s American Depository Shares from the New York Stock Exchange, ending a year-long saga that began when the company’s 2021 listing drew the ire of regulators in Beijing.
The company reported that over 96% of shareholders present at an extraordinary general meeting voted in favor of the move.
“It’s the only option for shareholders. They were going to be in purgatory if they (Didi) persisted in their disobedience to the Chinese government,” said Thomas Hayes, chairman of Green Hill Capital.
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Didi announced in April it would hold the May 23 EGM to vote on delisting, and also said it would not apply to list its shares on any other stock exchange before the delisting was complete.
Didi has struggled after annoying Chinese regulators by going ahead with a $4.4 billion New York listing in 2021 despite being asked to put it on hold. Just days after the IPO, the Cyberspace Administration of China (CAC) launched an investigation into the company’s data practices, then ordered app stores to remove 25 mobile apps operated by Didi, and instructed Didi to stop registering new users.
The company plans to file a Form 25 with the US Securities and Exchange Commission on or after June 2 to delist its ADS.
- Reuters, with editing by Neal McGrath