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.

The move comes almost exactly a year after Zeekr started trading in New York in one of the biggest US listings of a Chinese company in years. It underscores the extent of the upheaval hitting Li’s auto empire, which is reeling from trade conflicts with the West and severe EV pricing pressures in China.

Li has charted a new strategy for the Geely group, with a focus on consolidation, synergies and cost cutting to stem losses at several of his carmakers. After more than a decade of expansion that saw Geely acquire brands such as Volvo Car and Lotus in the UK, the company is shoring up resources to catch up to domestic rivals like BYD. Zeekr recently merged with another of Geely’s smart car brands, Lynk&Co.

“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 on Wednesday (May 7), adding that the move will strengthen Geely as a world-leading smart EV group.

Zeekr’s US-listed shares rallied 11 per cent in premarket trading. The stock has 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.

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. BLOOMBERG