Latest news with #GeelyAuto
Yahoo
2 days ago
- Automotive
- Yahoo
Geely's $2.2bn take-private bid for Zeekr faces investor pushback
Geely has been met with resistance from investors regarding its $2.2bn take-private bid for its electric car unit, Zeekr, reported Reuters. Early investors, including Contemporary Amperex Technology (CATL), Intel Capital, and Boyu Capital, have expressed concerns that the offer does not reflect Zeekr's fair value. The investors, who participated in Zeekr's initial fundraising, have voiced their dissatisfaction through two letters to the company's board and a special committee. They argue that the privatisation price is too low, with the first letter stating that it values Zeekr at only $6.5bn, significantly less than its peers such as Li Auto and Xpeng. Geely, known for purchasing international brands like Volvo and Proton, announced its intention to fully integrate Zeekr into Geely Auto on 7 May. This move came as a surprise, especially since Zeekr went public in the US just a year prior. The bid has also raised speculation about the future of other Geely units poised for Hong Kong listings, such as CaoCao, and the possibility of delisting US-listed units like Polestar. Geely Auto, which holds approximately two-thirds of Zeekr, and Zeekr itself fall under the Geely Holding umbrella, chaired by Geely founder Eric Li. A Geely spokesperson stated that discussions with Zeekr's special committee are in progress, while Zeekr, CATL, Intel Capital, Boyu Capital, and Cathay Fortune have not commented. Bilibili, another investor, declined to comment. The offer, as per Geely Auto's filing, is non-binding, with a binding agreement contingent on the execution of definitive agreements and their terms and conditions. Eric Li's strategy has shifted from aggressive acquisitions to streamlining operations and reducing costs amidst intense competition in China's auto market. Zeekr has emerged as an asset for Geely, with sales reaching 41,403 units in the first quarter, a 25% increase year-on-year, surpassing BYD's premium brand Denza. The investors have urged that any privatisation deal should gain the approval of the majority of "independent minority" shareholders. The five investors were part of Zeekr's first external fundraising round in 2021, valuing the company at $9bn, and held a combined 6% stake. A later round in 2023 valued Zeekr at $13bn, but its public valuation dropped to $5.5bn. Y2 Capital, another investor, has also reportedly sent a letter echoing these concerns. Geely's offer of $25.66 per American Depository Share of Zeekr is a 24% premium over the average share price before the announcement, below the average US take-private deal premium of 40% since 2023. Despite this, Zeekr shares are trading above the offer price, closing last at $26.59. Analysts suggest that Geely Auto may have enough votes to proceed with the privatisation without additional shareholder approvals due to its 65.7% stake in Zeekr. "Geely's $2.2bn take-private bid for Zeekr faces investor pushback – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Recorder
26-05-2025
- Automotive
- Business Recorder
China, HK stocks weaken
HONG KONG: China and Hong Kong stocks retreated on Monday as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. At the close, the Shanghai Composite index weakened 0.1% to 3,346.84. The blue-chip CSI300 index dropped 0.6%. In Hong Kong, the benchmark Hang Seng Index was down 1.4% at 23,282.33. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7%. Car-makers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9%, while rival Geely Auto tumbled 9.5%. The CSI All Share Automobiles Index lost 2.9%, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9%. 'The price cuts could put some short-term pressure on earnings,' analysts at Sinolink Securities said in a note. 'It got investors concerned about profitability, and the sector is likely to enter a correction.' Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2%. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. 'We estimate every 1% of RMB increase versus the USD could boost Chinese equities by 3%,' Goldman Sachs' China equity strategist Kinger Lau wrote in a note. Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates, he added.
Free Malaysia Today
26-05-2025
- Automotive
- Free Malaysia Today
China, Hong Kong stocks weaken as auto shares, Apple suppliers weigh
The benchmark Hang Seng Index was down 1.4% at 23,282.33. (EPA Images pic) HONG KONG : China and Hong Kong stocks retreated today as automobile shares slid on price war concerns and Apple suppliers dropped on potential US tariffs. At the close, the Shanghai Composite index weakened 0.1% to 3,346.84. The blue-chip CSI300 index dropped 0.6%. In Hong Kong, the benchmark Hang Seng Index was down 1.4% at 23,282.33. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.7%. Car-makers slipped, weighing on both onshore and offshore markets, after BYD slashed prices on some of the models to spur sales as competition heats up. Its Hong Kong-listed shares dipped 5.9%, while rival Geely Auto tumbled 9.5%. The CSI All Share Automobiles Index lost 2.9%, the biggest single-day drop in five weeks, while the Hang Seng Automobile Index in Hong Kong tumbled 4.9%. 'The price cuts could put some short-term pressure on earnings,' analysts at Sinolink Securities said in a note. 'It got investors concerned about profitability, and the sector is likely to enter a correction,' analysts said. Apple supplier stocks also lost some ground after US President Donald Trump threatened tariffs on imported iPhones. iPhone assembler Luxshare lost 0.2%. However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the firming trend of the currency should lend support to the nation's stocks. 'We estimate every 1% of renminbi increase versus the US dollar could boost Chinese equities by 3%,' Goldman Sachs' China equity strategist Kinger Lau wrote in a note. 'Sectors such as consumer discretionary, property, and brokers typically outperform when the yuan appreciates,' he added.
Business Times
15-05-2025
- Automotive
- Business Times
Geely appoints Zeekr head as new group CEO in shakeup
[HONG KONG] Billionaire Li Shufu is shaking up his sprawling Geely auto empire, lining up a new chief executive weeks after a shock move to take its US-listed premium electric car brand Zeekr private. Andy An, Zeekr's CEO, will also head parent Zhejiang Geely Holding Group after the subsidiary's privatisation by Geely Automobile Holdings is complete, said current CEO Daniel Li on an earnings call on Thursday (May 15). Zeekr's privatisation at a valuation of US$6.4 billion was announced earlier this month just a year after it started trading in New York and was seen as an escalation of Li's drive to streamline his business empire. The group, which also includes stakes in Volvo Car, iconic UK sportscar brand Lotus, and the maker of London's ubiquitous black taxis, is coming under pressure from intense competition in China's car market. 'Why this fast? Time waits for no one. Given the conditions of China's auto market, for Geely Auto, there is no room for error in the market,' Gui Shengyue, a senior executive with Geely Auto, said during the call on Thursday. 'So we must quickly resolve problems and through a merger, quickly lift the competitiveness of our company.' Daniel Li will become executive vice chairman of Geely Holding Group after the merger and will play an important role in the group's capital operations and collaborations, Li said. The leadership reshuffle was announced shortly after Geely Auto reported net income that more than tripled to 5.67 billion yuan (S$786 million) in the three months ended Mar 31, from 1.56 billion yuan a year earlier. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up That was broadly in line with guidance the company provided last month following a change in its accounting policy. Revenue rose 25 per cent to 72.5 billion yuan. Separately, Zeekr on Thursday reported a first-quarter net loss of 718 million yuan, narrowing 64 per cent from last year. Total revenue was largely flat, increasing just 1.1 per cent to 22 billion yuan. Zeekr merged with the Lynk & Co connected car brand earlier this year, and the period was the first quarter with the full integration of the two marques, Zeekr CEO Andy An said. 'The two brands' initial technological consolidation has already boosted profitability through optimised R&D and shared platforms,' An said. Geely recorded net current liabilities of 11.3 billion yuan, but said that after a comprehensive assessment, this has no significant impact on its ability to continue, because the business continues to generate stable cash flows, has good relationships with financial institutions and is carrying out plans to improve liquidity, it said. Geely continues to enjoy strong growth in China, with deliveries rising 48 per cent in the first three months of this year. Popular models such as the electric Xingyuan hatchback and Xingyue L sport utility vehicle are among the best-selling vehicles in the world's largest auto market. But like other Chinese automakers, Geely is facing stiff trade headwinds. The European Union's tariffs on Chinese electric vehicles and the increase in taxes on car imports and weak consumer sentiment in Russia – where Geely is a top seller, are impacting exports. Overseas deliveries grew just small 2 per cent in the first quarter, compared with a 66 per cent surge in a year earlier, according to a separate company filing in April. BLOOMBERG
Yahoo
12-05-2025
- Automotive
- Yahoo
Geely Auto to enter Polish market with two new energy vehicles
Geely Auto has partnered with Jameel Motors to distribute its new energy vehicles (NEVs) in Poland. This collaboration marks the first time Polish customers will have access to Geely Auto's advanced NEV line-up, capitalising on Poland's growing electric vehicle market. The market saw a 41% year-over-year increase in battery electric vehicles (BEVs) in February 2025. Jameel Motors will initially distribute two models: the Geely EX5, a next-generation electric SUV, and a plug-in hybrid electric vehicle (PHEV) from the C-SUV segment. These new energy passenger vehicles are built on the GEA (Global Intelligent Electric Architecture) platform, renowned for innovative design and safety features. The first model is set for sale in the third quarter of 2025. Jameel Motors CEO Jasmmine Wong stated: 'By expanding our new energy vehicle portfolio, we're giving Polish drivers even more freedom and flexibility in personal mobility – while actively supporting the country's transition to greener mobility. We're proud to collaborate with a company as innovative as Geely Auto, which continues to set new benchmarks in automotive technology and sustainability.' Geely Auto operates in over 80 countries with sales exceeding 2.17 million vehicles in 2024. The company prioritises innovation, with more than 30,000 engineers across R&D centres in China, Sweden, and the UK. Recently, it launched the first 'Intelligent Vehicle AI' technology system. Geely Auto International vice president Moe Wong said: 'We firmly believe that this partnership is not only a win-win business initiative that creates value for our customers, teams, and shareholders, but also a meaningful step in elevating Poland's automotive industry – by introducing high-quality, intelligent, and sustainable vehicles to the market.' Also, in March, Geely Auto expanded into the Vietnamese market with the Coolray SUV, part of its broader Southeast Asia expansion strategy. "Geely Auto to enter Polish market with two new energy vehicles" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
