Geely Auto has submitted a non-binding proposal to acquire all outstanding shares of its premium electric vehicle subsidiary Zeekr, signaling a significant restructuring of its business operations. May 7 offer values Zeekr at $2.57 per share or $25.66 per American Depositary Share (ADS)—representing a 13.6% premium over the NYSE closing price and a 20% premium over the 30-day volume-weighted average.
The proposal aims to transform Zeekr into a wholly owned subsidiary of Geely Auto, removing it from public markets and delisting from the NY Stock Exchange. With Geely already controlling approximately 65.7% of Zeekr’s total outstanding equity, this move represents a consolidation of power rather than an external acquisition.
The potential privatization of Zeekr comes amid increasing pressure in the global electric vehicle market, where efficiency and strategic alignment have become critical success factors. By bringing Zeekr fully under its corporate umbrella, Geely aims to eliminate redundant investments, reduce operational expenses, and improve coordination across its automotive portfolio.
This strategic restructuring follows a pattern seen across the automotive industry, where companies are reevaluating their organizational structures to better compete in the rapidly evolving transportation sector. For Geely, taking Zeekr private represents an opportunity to integrate the premium EV brand more tightly with its broader business strategy.
Investors responded positively to the announcement, with Zeekr shares jumping more than 10% in U.S. premarket trading. Favorable reaction suggests market confidence in Geely’s strategic direction and the potential value of bringing Zeekr’s operations in-house.
Should the transaction proceed, it would mark a significant milestone in Geely’s evolution as a global automotive player. Consolidation would potentially enable more streamlined decision-making and resource allocation across Geely’s expanding portfolio of brands.
For competitors in the premium EV space, Geely’s move to take Zeekr private signals a heightened focus on operational efficiency and strategic integration. In an industry where vertical integration has become increasingly important, this restructuring may provide Geely with advantages in speed-to-market and cost management.
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