Zeekr shares surged more than 10% in New York on Wednesday after Chinese parent company Geely Automobile offered to take the premium electric vehicle maker private in a $2.2 billion deal, just a year after its US listing.
Geely, which currently holds 65.7% of Zeekr’s outstanding share capital, said it plans to buy all remaining American depositary shares at $25.66 each – a 13.6% premium to the stock’s last close.
The non-binding proposal is part of Geely’s effort to streamline its sprawling operations and sharpen its focus amid growing competition in the EV market.
Zeekr, founded in 2021 by the Chinese auto giant, was created to take on rivals like Tesla and Nio in the premium EV segment.
Its first model, the Zeekr 001, launched in April 2021, with deliveries beginning later that year. In 2022, Zeekr delivered nearly 72,000 units of the 001 across more than 330 cities in China. The company has since expanded its product line to include the Zeekr 007 sedan, Zeekr X subcompact SUV, and the full-size Zeekr 009 MPV, among others.
Zeekr Power, its charging network, also covers more than 110 cities and 660 stations.
Geely Automobile, the Hong Kong-listed arm of billionaire Li Shufu’s Geely Holding group, said the potential buyout would help consolidate its business and better position the company to fend off intensifying global and domestic EV competition.
Geely Holding chairman Eric Li said: "This win-win proposal offers Zeekr shareholders a premium for their equity, long-term value for new and existing Geely Auto shareholders, and strengthens Geely as a world-leading smart electric vehicle group. We will continue to maintain close communication and cooperation with American and global capital markets."