The Beijing City Government has proposed investment in the Global Didi which will provide control of the state managed by the largest company in the world, according to people who are familiar with this problem.
Under preliminary proposals, the Shouqi group – part of the influential Beijing tourism group – and other companies based in the capital will obtain shares in Didi, said people, asking not to be identified to discuss personal information.
The scenario that is considered includes a consortium taken by what is called “Gold Share” with Veto Strength and Board Chair, they add.
Didi said on Saturday that it worked with regulators on Cybersecurity reviews and reports on investment LED Beijing was not true.
The company shares traded in the US jumped 7.5% on Friday morning in New York.
Stock has decreased by 36% this year.
It is not clear how much shares are tried by the city and whether the proposal will be approved by senior government officials.
Didi is currently controlled by the Cheng Wei Co-Founder Management Team and President Jean Liu.
Softbank and Uber are the largest minority shareholders in Didi.
The Press Office of the Beijing City Party Committee did not respond to a comment request, while the call to Shouqi was missed.
And the Beijing tourism group did not reply to a comment request.
The regional government traditionally has a large voice in the company’s restructuring on their grass, and the solution imagined with the priority of China’s President XI Jinping to distribute wealth and curb the influence of the Internet sector.
The city proposal can require take a large piece of Didi or nominal betting accompanied by gold and board chairs, said people.
The last model will be similar to the previous investment by the government in the Chinese Bypance unit, which gives the Veto-rights country entity for important decisions.
The takeover proposal came along with the administration of the Penalty XI who was considering to increase to the leader of the country, which debuted in New York in June for the objection of the Chinese Maya Administration.
Since it was aired by the probe into data security and how to treat millions of drivers.
Many of Beijing option with heavy involves surrender of state control over companies traditionally operated in legal gray zones.