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Investing.com -- Reuters reports that five early investors in Zeekr, the premium electric car unit of China’s Geely, have expressed concerns over the proposed take-private offer of $2.2 billion, claiming that it undervalues the company.
The investors include Contemporary Amperex Technology Co Ltd (CATL), Intel (NASDAQ:INTC) Capital and Boyu Capital, who participated in Zeekr’s initial fundraising round.
These investors have communicated their concerns to the company and a special committee assigned to evaluate the offer in two separate letters. They argue that the proposed privatization price does not accurately reflect Zeekr’s fair value.
Geely, which is recognized globally due to its acquisition of foreign brands such as Volvo (OTC:VLVLY) and Proton, made an offer on May 7 to privatize Zeekr. The automaker stated its intention to fully integrate Zeekr into Geely Auto (HK:0175).
Geely Auto, which is under the control of unlisted parent company Geely Holding, owns about two-thirds of Zeekr. Both Geely Auto and Zeekr are part of the Geely Holding conglomerate, with Geely founder and chairman Eric Li serving as the chairman of the Zeekr board.
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