Geely to Take Zeekr Private While Maintaining Global Capital Market Ties
Geely Holding has announced plans to take its electric vehicle subsidiary, Zeekr, private by delisting it from the New York Stock Exchange. Despite this move, Geely Chairman Li Shufu emphasized the company's commitment to maintaining close communication and collaboration with US and international capital markets. Geely Auto, the group’s primary listed entity, has offered $25.66 per American depositary share in cash or new shares, representing a 13.6% premium over Zeekr’s recent closing price. This valuation places Zeekr at approximately $6.4 billion. As Geely already owns 65.7% of Zeekr, analysts estimate it will need around $2.2 billion in cash to acquire the remaining shares. The decision comes just one year after Zeekr’s significant IPO in New York. This restructuring aligns with Geely’s broader strategy, outlined in its 'Taizhou declaration,' aimed at eliminating overlapping roles, reducing costs, and ensuring sustainable long-term growth. Zeekr, which recently merged with Lynk & Co, has delivered nearly 474,000 electric vehicles since its 2021 launch, though recent monthly sales have stagnated below 15,000 units.
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Geely to Take Zeekr Private While Maintaining Global Capital Market Ties
Geely Holding has announced plans to take its electric vehicle subsidiary, Zeekr, private by delisting it from the New York Stock Exchange. Despite this move, Geely Chairman Li Shufu emphasized the company's commitment to maintaining close communication and collaboration with US and international capital markets. Geely Auto, the group’s primary listed entity, has offered $25.66 per American depositary share in cash or new shares, representing a 13.6% premium over Zeekr’s recent closing price. This valuation places Zeekr at approximately $6.4 billion. As Geely already owns 65.7% of Zeekr, analysts estimate it will need around $2.2 billion in cash to acquire the remaining shares. The decision comes just one year after Zeekr’s significant IPO in New York. This restructuring aligns with Geely’s broader strategy, outlined in its 'Taizhou declaration,' aimed at eliminating overlapping roles, reducing costs, and ensuring sustainable long-term growth. Zeekr, which recently merged with Lynk & Co, has delivered nearly 474,000 electric vehicles since its 2021 launch, though recent monthly sales have stagnated below 15,000 units.
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