Against the backdrop of the Sino-US tariff friction, the first Chinese stock that has been hotly discussed in the market has appeared.
On May 7, Geely Automobile Holdings Limited (hereinafter referred to as "Geely Auto", stock code: 0175.HK) announced plans to acquire all issued shares of Zeekr Intelligent Technology Co., Ltd. (hereinafter referred to as "Zekr", stock code: NYSE: ZK).
Geely Auto currently holds about 65.7% of Zeekr's shares. If the transaction is completed, Zeekr will be fully merged with Geely Auto. Zeekr Auto, which officially landed on the New York Stock Exchange in May last year, will become a wholly-owned subsidiary of Geely Auto, privatize and delist from the New York Stock Exchange.
On the morning of the day the announcement was released, Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office that conditions would be created to support high-quality Chinese companies listed overseas to return to the mainland and Hong Kong stock markets.
Geely Holding Group said that this move is an important step to further implement the Taizhou Declaration, focus on the core automobile business, improve resource utilization efficiency, and deepen brand synergy, which will enhance Geely Auto's global competitiveness in the field of smart new energy vehicles.
After the merger, under the new management structure, each brand maintains a unique and clear positioning, differentiated technology planning and product portfolio, providing a unique consumer experience for different user groups.
Among them, Geely Auto's Zeekr is positioned as a global luxury technology brand, Lynk & Co is positioned as a global high-end new energy brand, and Geely Galaxy and China Star are positioned as global mainstream brands. While expanding their market share in different segments, each brand seeks to develop in a coordinated manner, strengthens coordination in technology, products, supply chain, manufacturing, marketing and services, and international market expansion, improves technological innovation capabilities, and stimulates economies of scale.
Li Shufu, Chairman of Geely Holding Group, said: "In the face of fierce market competition and an increasingly complex economic environment, we will assess the situation and, in accordance with the spirit of the Taizhou Declaration, continue to promote the integration of our automotive business, return to one Geely, integrate technological advantages, improve our innovation and profitability, continue to create long-term value, and build a world-leading smart electric vehicle group. At the same time, we will continue to maintain close communication and cooperation with the U.S. and international capital markets."
According to the announcement, Geely Automobile acquired all issued and outstanding Zeekr shares and American Depositary Shares (excluding the beneficial owners of the Group), with a proposed purchase price of US$2.57 per Zeekr share or US$25.66 per American Depositary Share. This price represents a premium of approximately 13.6% over the closing price of the American Depositary Shares on the NYSE on the last trading day, and a premium of 20% over the volume-weighted average price of the American Depositary Shares on the NYSE during the last 30 trading days ending on the last trading day.
Influenced by this news, as of around 5:30 Eastern Time, Zeekr's U.S. stocks rose by more than 11% in pre-market trading to $25.1, basically close to the price of $25.66 that Geely Automobile paid to privatize Zeekr.
