Geely Takes Zeekr Private: Luxury EV Startup's Future
Zeekr to Delist from NYSE, Returning to Private Ownership Under Geely
Geely Auto, a major Chinese automotive manufacturer, is proceeding with the privatization of its electric vehicle (EV) arm, Zeekr. This decision arrives a little over a year following Zeekr’s initial public offering on the New York Stock Exchange.
Geely's Privatization Offer
The move was initiated approximately two months ago when Geely extended an offer to repurchase Zeekr shares. This followed earlier statements made by former President Donald Trump, which indicated potential delisting of Chinese companies from U.S. stock exchanges.
Shareholder Options and Valuation
Upon completion of the merger, Zeekr shareholders will have a choice of receiving either $2.69 in cash for each share held, or 1.23 shares of Geely. The offering represents a slight increase compared to Geely’s initial proposal made in May.
For those holding Zeekr American Depositary Shares (ADSs), where each ADS represents ten Zeekr shares, the options are $26.87 in cash or 12.3 Geely ADSs.
Investor Eligibility
Shareholders generally have the flexibility to select either a cash or stock payout. However, retail investors based in Hong Kong will automatically receive a cash settlement.
Timeline and Approvals
The Zeekr board of directors has already given its approval for the merger. The anticipated closing date for this transaction is projected to be within the fourth quarter of 2025.
Impact on Waymo Partnership
The implications of this privatization on Zeekr’s existing collaboration with Waymo remain uncertain. This partnership focuses on the development of specialized robotaxis intended for widespread use within the United States.
Waymo is currently planning to introduce its Zeekr-based vehicles in the Bay Area later this year, with testing already observed on the streets of San Francisco.
Seeking Further Information
TechCrunch has contacted Waymo to request additional details regarding the potential effects of this change.