What happens to options & RSUs in a privatization?
Interested in this because of the rumor that DiDi Global is thinking about going private due to Chinese regulatory hurdles (which DiDi denies). Please leave politics out of this thread as much as possible.
Can anyone explain what happens if:
1. You are a software engineer working at DiDi.
2. You got some options or restricted stock units in the DiDi 2017 incentive plan.
3. Your company goes public. You are happy.
4. Chinese authorities don't like your IPO. You feel unhappy.
5. You hear those two product managers chatting in the pantry that DiDi Global might go private because of strong headwind.
6. You checked your option vesting schedule, and the prospectus. You found out about the 180-day lock-up period.
7. You wonder what happens if DiDi indeed goes private. Of course you won't lose options, but do you get to liquidate the vested options right away suppose the company goes private, and the tender offer price is above your options' strike price (suppose options have the same strike price, which is common practice), thus creating an incentive to exercise the options?
google is your friend. https://darrowwealthmanagement.com/blog/asset-management-employee-stock…
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