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HANGZHOU - Zeekr Intelligent Technology Holding Limited (NYSE:ZK), a prominent player in the automobiles industry with a market capitalization of $7.1 billion and annual revenues exceeding $10.5 billion, announced Tuesday it has entered into a definitive merger agreement with Geely Automobile Holdings Limited, which will make Zeekr a wholly-owned subsidiary of Geely. According to InvestingPro data, the company has demonstrated strong market performance with a 46% return over the past year.
Under the agreement, Zeekr shareholders can elect to receive either $2.687 in cash per share or 1.23 newly issued Geely shares for each Zeekr share. For American depositary shares (ADS), holders can choose between $26.87 in cash or 12.3 newly issued Geely shares per ADS.
The cash consideration represents an 18.9% premium to Zeekr’s closing ADS price on May 6, 2025, the last trading day before the acquisition proposal was publicly disclosed.
Geely currently owns approximately 65.2% of Zeekr’s voting rights and has agreed to vote in favor of the transaction. The merger requires approval from two-thirds of Zeekr shareholders voting at a special meeting and more than 50% of Geely’s independent shareholders.
The transaction, expected to close in the fourth quarter of 2025, will result in Zeekr becoming a privately held company and its ADSs will be delisted from the New York Stock Exchange. For detailed insights into similar market opportunities and comprehensive analysis of over 1,400 stocks, investors can access in-depth Pro Research Reports through InvestingPro.
Zeekr’s board of directors approved the merger following the recommendation of a special committee of independent directors. Kroll, LLC is serving as financial advisor to the special committee, while Citigroup Global Markets Asia Limited is advising Geely.
The merger is subject to customary closing conditions. The cash consideration will be funded through Geely’s internal resources or debt financing if necessary. This information is based on a press release statement from the company.
In other recent news, ZEEKR Intelligent Technology has been in the spotlight following Geely Auto’s announcement of a privatization bid. This move values ZEEKR at $2.566 per share or $25.66 per American Depositary Share (ADS), representing a 13.6% premium to its last closing price. If successful, the deal would result in ZEEKR being delisted from the New York Stock Exchange, as Geely Auto already holds a significant 65.7% stake in the company. Additionally, Macquarie analyst Eugene Hslao adjusted the price target for ZEEKR shares to $38, down from $47, while maintaining an Outperform rating. This adjustment comes amid the ongoing privatization process, which has influenced market expectations for ZEEKR’s stock. Furthermore, ZEEKR recently filed a Form 6-K with the U.S. Securities and Exchange Commission, a standard procedural disclosure for foreign private issuers. This filing ensures compliance with SEC regulations and maintains transparency with investors. These developments provide critical insights for investors monitoring ZEEKR’s financial and operational trajectory.
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