Geely Automobile Holdings Co., Ltd. (hereinafter referred to as "Gely Auto") plans to merge with Zekr Intelligent Technology Co., Ltd. (hereinafter referred to as "Zekr"). As of press time, Zekr's U.S. stock market rose by more than 11% before the market opened.

On May 7, Geely Auto issued an announcement that the company submitted a non-binding quotation letter to Zekr on May 7, suggesting privatizing Zekr and acquiring all issued and issued Zekr shares and American depositary shares (except for the beneficiary owners of the Group).

The recommended purchase price is $2.57 per Zekr shares or $25.66 per American depositary stock. This price is about 13.6% premium to the closing price of American depositary stocks on the New York Stock Exchange on the last trading day, and a 20.0% premium to the volume-weighted average price of American depositary stocks on the New York Stock Exchange during the last 30 trading days ending the last trading day.

Geely Auto said that as of the announcement date, the Group held approximately 65.7% of the total issued and issued foreign equity capital of Zekr. If the privatization proposal is implemented and completed, Zekr will become a wholly-owned subsidiary of the Company, realize privatization and delisting from the New York Stock Exchange.

This also means that if the above transaction is completed, Zekr will be fully merged with Geely Auto. Geely Auto said that this move is an important step to further implement the Taizhou Declaration, focus on the main automobile business, improve resource utilization efficiency, and deepen brand collaboration, and will strengthen Geely Auto's global competitiveness in the field of smart new energy vehicles.

"This move aims to promote deep integration and efficient coordination of internal resources, eliminate duplicate investment, reduce costs, and improve corporate competitiveness." Geely Auto said that after the merger, under the new management structure, each brand maintains a unique and clear positioning, differentiated technical planning and product portfolio, providing a unique consumer experience for different user groups.

Li Shufu, chairman of Geely Holdings Group, said: "Faced with fierce market competition and an increasingly complex economic environment, we will judge the situation and continue to promote the integration of automobile business in accordance with the spirit of the Taizhou Declaration, return to Geely, integrate technological advantages, improve innovation and profitability, continue to create long-term value, and build a world-leading smart electric vehicle group. At the same time, we will continue to maintain close communication and cooperation with the United States and international capital markets."

It is reported that on September 1, 2024, all management of Geely Auto came to Geely's first factory, Taizhou Linhai Base, to study, review the entrepreneurial journey, and jointly create the "Taizhou Declaration". The Taizhou Declaration mentioned that "focusing on the main automobile business and unswervingly promote the transformation of electrification, intelligence, networking and sharing".

On May 1, data released by the Zekr Technology Group showed that in April this year, its Zekr and Lynkrian brands delivered a total of 41,300 new cars, an increase of 18.7% year-on-year and 1.5% month-on-month. Among them, the sales volume of the Zekr brand was 13,700 units and the sales volume of the Lynkr brand was 27,600 units.

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[Editor in charge: Xie Wei PF123]