China’s Geely Automobile Holdings announced on Wednesday that it plans to acquire the remaining 34.3% stake in electric vehicle maker ZEEKR that it does not already own. The move sent ZEEKR’s stock up by over 10% in premarket trading in New York.
Geely has offered to purchase ZEEKR’s American Depositary Shares (ADS) at $25.66 each, representing a 13.6% premium over the stock’s closing price on Tuesday. ZEEKR’s ADS saw a rise of 11.11%, reaching $25.10 in U.S. premarket trading.
As of May 7, Geely owned approximately 65.7% of ZEEKR’s total share capital. The offer values ZEEKR at $6.52 billion. Geely plans to streamline operations and reduce costs by creating a unified platform through this acquisition, eliminating redundant investments.
The company intends to finance the deal using a combination of new shares, cash reserves, and, if necessary, debt financing.
