Latest news with #Zeekr
Malay Mail
19 hours ago
- Automotive
- Malay Mail
Zeekr investors hit out at Geely's US$2.2b privatisation plan, say EV maker worth more than Nio, Xpeng, Li Auto
Five early investors, including CATL and Intel Capital, have sent letters Say offer values Zeekr far lower than some peers despite better prospects Geely plans to merge Zeekr into Geely Auto unit HONG KONG/SHANGHAI, May 30 — China's Geely is undervaluing its premium electric car unit Zeekr with the US$2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other US-listed units such as Polestar . The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. Improving the strategic focus Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset – sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25 per cent from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at US$6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the 'independent minority' shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of US$500 million that valued it at US$9 billion in 2021. At the time, they together held a 6 per cent stake in the company. A subsequent fundraising round valued the EV maker at US$13 billion in 2023 but a year later it went public at a valuation of US$5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of US$25.66 per American Depository Share of Zeekr represented a 24 per cent premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in US take-private deals has been about 40 per cent since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at US$26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7 per cent stake in Zeekr. — Reuters
Yahoo
20 hours ago
- Automotive
- Yahoo
Exclusive-Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI (Reuters) -China's Geely is undervaluing its premium electric car unit Zeekr with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar. The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. IMPROVING THE STRATEGIC FOCUS Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr.
Reuters
20 hours ago
- Automotive
- Reuters
Exclusive: Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI, May 30 (Reuters) - China's Geely is undervaluing its premium electric car unit Zeekr (ZK.N), opens new tab with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL) ( opens new tab, Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo ( opens new tab and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto ( opens new tab. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar . The other two investors who wrote the letters were Bilibili ( opens new tab and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's ( opens new tab premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto ( opens new tab, Nio ( opens new tab and Xpeng ( opens new tab, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr.
Yahoo
20 hours ago
- Automotive
- Yahoo
Exclusive-Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI (Reuters) -China's Geely is undervaluing its premium electric car unit Zeekr with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar. The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. IMPROVING THE STRATEGIC FOCUS Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr. Sign in to access your portfolio
Khaleej Times
3 days ago
- Automotive
- Khaleej Times
Zeekr unveils innovations: 2025 Shanghai Auto Show highlights
The 2025 Shanghai Auto Show continues to be a barometer for automotive trends, placing increasing emphasis on electrification, autonomous driving, and smart vehicle technologies, and featuring over 100 new car debuts. Among the standout participants was the Chinese marque Zeekr, Geely's premium EV brand, which is exclusively distributed in the UAE by AW Rostamani. Zeekr 7X showcased: Chic mid-size SUV bound for the Middle East The 7X is Zeekr's striking new mid-size SUV designed to take on the Tesla Model Y. Its design incorporates Zeekr's "Hidden Energy" language, highlighted by the Stargate interactive light display. Inside, it boasts a spacious cabin with Nappa leather seats, a 16-inch infotainment screen powered by a Qualcomm Snapdragon 8295 chip, and advanced driver-assistance features supported by dual Mobileye Q5H processors. Built on Geely's Sustainable Experience Architecture (SEA) platform, it features an 800V high-voltage system and is available with either a 75-kWh Golden Brick Battery, offering up to \~480 km WLTP, or a 100-kWh Qilin Battery, delivering up to 615 km WLTP. The 7X is expected to arrive in the Middle East market, where demand for tech-forward electric SUVs is rapidly growing. Zeekr 9X unveiled: A new era of luxury SUVs Taking centre stage at the Zeekr booth was the 'Bossman-style' ultra-luxury Zeekr 9X flagship SUV. Its striking design features the world's largest single-piece chrome grille on any SUV, a high roofline, and oversized wheels. Prioritising ease of access, it also has the widest rear doors among new energy SUVs, with a width exceeding one metre and an opening angle close to 90 degrees. Furthermore, the cabin is finished with premium materials and features an immersive digital environment. The 9X is also said to be the world's first super-hybrid SUV with a full-stack 900V high-voltage architecture, powered by the industry-leading 'Xiaoyao' battery. As for propulsion, with the help of a 2.0T engine, a 290 kW front motor, and a 370-kW rear motor, it is claimed to complete the 0–100 km/h sprint in a supercar-like 3 seconds and deliver an 'unprecedented' pure-electric driving range. Zeekr 009 grand collector's edition unveiled: Gold-plated MPV with a 43-inch entertainment screen Alongside the 9X was the stunning gold-plated Zeekr 009 MPV. The shimmering gold exterior, paired with the 009's already imposing grille and cutting-edge tech, made it arguably the show's most photographed vehicle. This limited edition pampers passengers with a 43-inch screen, hand-polished marble inlays, Nappa leather, lounge-like rear seats with massage and ventilation, a 31-speaker Yamaha audio system, and a UV-sterilising refrigerator. Its dual motors deliver 536 hp, enabling a 0–100km/h run in just 3.9 seconds. It also features 800V ultra-fast charging, adding 500km of range in just 12 minutes. Zeekr mix: The ultimate electric minivan Also drawing attention was the mid-size electric MPV built on the new SEA-M platform. This innovative and versatile vehicle features a 'B-pillarless' design with opposing sliding doors, electrically rotatable front seats, and a spacious interior.
