Driving Geely's Ambition: Zeekr's Full Privatization
Automaker Geely aims to acquire ownership of Zeekr, the electric vehicle brand.
Chinese auto giant, Geely Automobile Holdings Limited, has slammed the pedal on a potential takeover of its premium electric vehicle subsidiary, Zeekr Intelligent Technology. The announcement involves Geely snatching full control of Zeekr, which may lead to the company's delisting from the New York Stock Exchange (NYSE). Here's the scoop on this game-changing move that could shake up the global EV market.
The Nitty-Gritty of the Proposal
If the proposed deal seals, Zeekr's value could soar to approximately $6.5 billion. Geely requires around $2.24 billion to acquire the remainder of shares it doesn't already own, assuming shareholders go for cash[1][2][5]. However, those bold enough can opt to receive 12.3 Geely Auto shares for each Zeekr American Depositary Share (ADS), based on a volume-weighted average price of HK$16.14[1][5].
Riding the Stock Roller Coaster
The news of Geely's offer has sent Zeekr's shares rocketing, surging by 11%. Despite this initial surge, the company's shares have slumped around 20% this year, thanks to tariffs on Chinese electric vehicle and auto exports and uncertainties surrounding U.S. President Donald Trump's trade policies[3].
Strategy Sealed in the Rubber
Geely is determined to create a unified listing platform by merging Zeekr's assets and resources, boosting its competitive edge in the passenger vehicle sector. This ambitious move aims to streamline future strategic decisions that will address the challenges ahead in the global market[1][5].
With bygones being bygones, Geely's acquisition ambitions are clear. Its intense competition with Chinese EV titans like BYD pushes the automotive behemoth to strengthen its foothold, even if that means saying goodbye to its shares on the NYSE. The future, at this point, seems to be electric, premium, and undeniably intriguing.
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- Geely Automobile Holdings Limited aims to acquire the remaining shares of Zeekr Intelligent Technology, potentially integrating its premium electric vehicle business into their own operations.
- If the proposed takeover is successful, Zeekr's value could reach approximately $6.5 billion, with shareholders given the option to receive Geely Auto shares or cash.
- The announcement of Geely's offer has led to a surge in Zeekr's shares, despite a 20% slump this year due to tariffs and trade policy uncertainties.
- By merging Zeekr's assets and resources, Geely hopes to streamline future business decisions and gain a competitive edge in the global passenger vehicle market.
- This move is part of a broader strategy by Geely to strengthen its position in the electric vehicle industry, as it competes against Chinese EV titans like BYD.
- As Geely consolidates its positions in various sectors, including real-estate, technology, and finance, investing opportunities arise with consumer loans, auto loans, business loans, mortgages, deposits, cash management products, credit cards, debit cards, new auto leasing services, used auto leasing services, and business auto leasing services.
