BRIEF: Mobvista shares plunge on politically motivated potential asset sales
Shares of Mobvista Inc. (1860.HK), a provider of digital tools for app developers, plunged on Thursday after the company confirmed reports that it is exploring the sale of its Mintegral and marketing technology businesses. The stock fell as much as 42% in intraday trading and closed down 38% at HK$5.68.
The company said its decision to sell the two businesses was driven by two new laws last year designed to protect user data in the U.S., which is a major source of Mobvista’s business. The company said additional statements in February from new U.S. President Donald Trump’s administration outlined “potential further regulatory scrutiny on companies and transactions involving technology, infrastructure, and critical industries — including those dealing in personal data.”
“While the company fully supports these initiatives and is committed to maintaining the highest standards of data security, the company recognizes that these changes may affect the target businesses,” it said.
Mobvista was founded in Guangzhou in March 2013, and later moved its headquarters to Singapore. Even after the Thursday share selloff, Mobvista’s shares are still more than 40% above their December 2018 IPO price of HK$4.
By Doug Young
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