Asia

Beijing City government denies media report of Didi takeover

HONG KONG (BLOOMBERG) – The Beijing municipal government denied a report it had proposed an investment in Didi Global that could put the Chinese ride-sharing giant under state control and keep its assets within the Chinese capital.

“After looking into the matter with related parties, the matter of ‘Beijing state-backed firms investing in Didi’ and ‘Shouqi Group teaming up with other state-backed firms to invest in Didi’ is untrue,” the municipal government’s press office said in a statement, without further elaboration.

A representative from Didi said on Saturday (Sept 4) that the firm was working with regulators on a cybersecurity review and reports about a Beijing-led investment are untrue.

Bloomberg News reported last week the municipal government had proposed that Shouqi Group – part of the influential Beijing Tourism Group – and other firm based in the capital would acquire a stake in Didi.

One scenario under consideration would be for the consortium to take a so-called “golden share” in the company with veto power and a board seat. The proposal would need approval from China’s central government, Bloomberg reported.

The takeover proposal comes alongside a swath of penalties Chinese President Xi Jinping’s administration is considering for the country’s ride-hailing leader after it went public in New York over the objections of the Cyberspace Administration of China.

The internet industry overseer saw that decision as a challenge to the central government’s authority and officials from multiple government agencies have since launched a probe into its operation. Shares of Didi have declined 36 per cent this year.

More on this topic

Join ST’s Telegram channel here and get the latest breaking news delivered to you.

Source: Read Full Article