Although Geely has taken Zeekr private, it stresses its readiness to engage with global capital markets.

      Geely introduced the Zeekr 001 at its facility in Ningbo, eastern China, on Thursday, April 15, 2021. (Credit: Geely)

      Geely Holding's chairman, Li Shufu, mentioned on Wednesday that the Chinese automaker will “keep close communication and collaboration with US and international capital markets” as it moves forward with plans to take its electric vehicle division, Zeekr, private and off the New York stock market (our translation). This was stated in a release on the Chinese social media platform WeChat. Geely Auto, the group's primary publicly listed branch, has proposed a price of $25.66 per American depositary share for Zeekr, either in cash or through the issuance of new shares. This figure represents a 13.6% premium over the stock’s value at the end of trading on Tuesday, according to a statement from the company to the Hong Kong stock exchange. Following this announcement, Zeekr shares surged 11.5% to $25.2, leading to a market capitalization of $6.4 billion as of Wednesday, roughly the same valuation as the proposed deal. Since Geely already owns 65.7% of Zeekr, it would need to pay about $2.2 billion in cash for the remaining 34.3% stake, based on calculations from Bernstein analysts. This unexpected decision comes just a year after Zeekr’s New York market debut in May, which raised $441 million in the largest initial public offering by a Chinese company in three years, reported Reuters. Geely, which was the third largest auto manufacturer in China by sales volume last year, has been restructuring its operations by cutting overlapping roles and reducing employee costs to ensure sustainable long-term growth, following the release of its “Taizhou declaration” plan in September. Geely Holding manages a wide range of vehicle brands, including Zeekr, Lynk & Co, and Galaxy. The Zeekr brand, launched by Geely in early 2021, has delivered nearly 474,000 all-electric vehicles within four years as of April, although its monthly sales this year have plateaued below 15,000 units. In February, the premium EV brand merged with Lynk & Co, acquiring a 51% controlling interest in its sister brand and forming another new group alongside Geely Auto under Geely Holding.

      Jill Shen is a technology reporter based in Shanghai, focusing on Chinese mobility, autonomous vehicles, and electric cars. You can reach her via e-mail at [email protected] or on Twitter at @jill_shen_sh. More articles by Jill Shen.