- Didi investors are expected to decide Monday whether the company should delist from the NYSE.
- The vote follows a year-long dispute between Didi and Beijing authorities.
- Last June, Beijing warned Didi against listing on the NYSE, flagging cybersecurity concerns.
Didi, a popular ride-hailing platform in China, sometimes called "China's Uber," is about to find out on Monday whether it can move on to the next phase in a year-long clash with Beijing that wiped more than $60 billion from its market value.
The company is slated to hold an extraordinary general meeting on Monday to let its backers vote on whether it should remain listed on the New York Stock Exchange, according to an SEC filing from earlier this month. The meeting is scheduled to take place Monday evening in the Chinese capital, Bloomberg and Nikkei reported.
"If we obtain the shareholder approval, we will take steps to delist our ADSs from the NYSE," Didi said in the filing, referring to the American Depositary Shares that represent shares offered by a non-US company.
Didi said Monday's vote only requires a simple majority to pass. Some of its biggest shareholders include SoftBank, Uber, and Tencent, per Bloomberg. Together with Didi's directors, the company's largest shareholders hold around 48% of Didi's equity ownership, its annual report published in April shows.
Didi's most significant investors are likely to back the move to delist Didi from the NYSE, according to Bloomberg and Nikkei. Once they give their consent, it's likely the company will remain private as it seeks to address Beijing's concerns over how the company is handling cybersecurity issues, according to the May filing. Shareholders can expect to trade stock on the so-called pink-sheets market, which houses penny stock, per Bloomberg.
The company said that only when Didi appeases Beijing will it seek a listing in Hong Kong.
Monday's vote is expected to draw to a close a year-long dispute between Didi and Beijing authorities.
Last year, Chinese regulators wanted Didi to delay its listing until after they completed reviewing its data practices. Authorities wanted Didi to overhaul systems used to house sensitive user data.
Didi ignored those demands and listed on the NYSE in June, drawing the ire of Beijing. Shortly after, Chinese regulators opened an investigation into the company on national security grounds, Reuters reported. They also forced Didi off Chinese app stores, per Reuters.
As recently as April, Didi was still locked in a tussle with Beijing, with government officials wanting to increase the penalties on the company for not adhering to Beijing's demands, Bloomberg reported last month.
The dispute has weighed on Didi's market value. It was worth about $80 billion when it went public, but is now only worth about $7.3 billion as of Friday, per Bloomberg.
Amid its clash with Beijing, the company's president Jean Liu set her posts on China's Twitter-like Weibo to private. Observers surmised that she wanted to distance herself from Beijing's increased scrutiny on the company.
Going private could also spare Didi scrutiny from US regulators. In the same SEC filing in May, Didi revealed that it was coordinating with US officials on investigations related to its botched listing.
Axel Springer, Insider Inc.'s parent company, is an investor in Uber.