Geely plans bid to take Zeekr private at value of US$6.4 billion

[HONG KONG] Billionaire Li Shufu is ramping up a push to streamline his sprawling business empire, with his Hong Kong-listed Geely Automobile Holdings offering to take premium electric vehicle brand Zeekr private.

The proposal would see Geely buy all shares in US-listed Zeekr Intelligent Technology Holding that it does not already own for US$2.566 per share, or US$25.66 per American Depositary Share – a premium of about 13.6 per cent to its last closing price. The deal, should it go ahead, would value Zeekr at about US$6.4 billion.

Investors may elect to receive either cash or 1.23 newly issued shares, based on the volume-weighted average price of the shares of HK$16.14.

Li has charted a new strategy for his Geely group, with a focus on consolidation, synergies and cost cutting to stem the losses at several of his carmakers. After more than a decade of expansion that saw Geely acquire brands such as Volvo Car and the UK’s Lotus Cars, the Chinese automaker is shoring up resources to catch up to domestic rivals like BYD.

“The continued integration of Geely’s automotive business gives rise to greater technological synergies, improve innovation capabilities, and increase profitability for all its holdings,” Li said in a statement on Wednesday (May 7). The move will strengthen Geely as a world-leading smart EV group, he said.

The move comes just a year after Zeekr had listed in the US and follows the recent merger of the EV maker with another of Geely’s smart car brands, Lynk&Co. Geely holds about 65.7 per cent of the total issued and outstanding share capital of Zeekr.

Zeekr shares have slumped about 20 per cent this year as tariffs against Chinese EV and auto exports, and uncertainty over US President Donald Trump’s trade policies weigh on the sector. BLOOMBERG