Geely Auto Proposes $2.4 Billion Privatization of ZEEKR for NYSE Delisting

Stock Track
15 Jul

Geely Automobile Holdings Ltd. (00175) announced on July 15, 2025 (non-trading hours) that it has entered into a merger agreement with its subsidiary Keystone Mergersub Limited and ZEEKR Intelligent Technology Holding Limited (ZK). This agreement initiates the privatization of ZEEKR through acquiring all outstanding ordinary shares and American Depositary Shares (ADS), excluding certain excluded shares.

Qualified ZEEKR shareholders (excluding Hong Kong non-professional investors who may only receive cash) may elect for either: (i) $2.687 cash or 1.23 consideration shares per ordinary share; or (ii) $26.87 cash or 12.3 consideration shares (delivered as Geely ADS) per ADS. Shareholders failing to make timely elections will automatically receive cash compensation. All consideration shares will be issued under special authorization.

Financial implications include: - Full-cash scenario: Total cash consideration of $2.399 billion (approximately RMB 17.199 billion), including $1.048 billion (RMB 7.518 billion) for connected holders. Funding will come from internal resources or debt financing. - Full-equity scenario: Maximum issuance of 1.098 billion consideration shares, representing approximately 10.9% of Geely's current issued share capital (4.8% to connected holders). Post-privatization, this would constitute about 9.8% of enlarged share capital.

Upon completion, Keystone Mergersub will merge with ZEEKR, with ZEEKR surviving as Geely's wholly-owned subsidiary. This transaction will trigger ZEEKR's delisting from the New York Stock Exchange. Excluded shares will be cancelled without compensation.

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