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Investing.com -- Shares of Zeekr, a Chinese electric vehicle company listed in the US, saw a 10% increase in premarket trading following an announcement by Geely Auto (HK:0175) that it intends to take the company private.
As per the exchange filing, Geely Auto’s proposal values Zeekr at $2.566 per share or $25.66 per American Depositary Share (ADS). This proposed purchase price signifies a premium of approximately 13.6% to the closing price of the ADSs on the New York Stock Exchange (NYSE) on the last trading day.
Geely Auto currently holds around 65.7% of the total issued and outstanding share capital of Zeekr. If the deal materializes, Zeekr will be delisted from the NYSE. The announcement of Geely Auto’s intention to privatize Zeekr has had an immediate effect on the company’s share value.
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