Five Early Investors Challenge Geely’s $2.2B Zeekr Privatization Offer

Geely's $2.2 billion proposal to take its premium electric vehicle unit Zeekr private has met strong opposition from five early investors, including Contemporary Amperex Technology (CATL), Intel Capital, and Boyu Capital. These investors argue that the offer undervalues Zeekr, suggesting the unit's fair valuation is significantly higher—citing previous fundraising rounds that valued the company up to $13 billion and comparing it favorably to peers like Nio, Xpeng, and Li Auto. They have sent joint letters to Zeekr's board and a special committee, urging a careful reassessment of the offer and highlighting Zeekr's better cash flow and profit prospects compared to competitors. Geely, which owns about two-thirds of Zeekr through its unlisted parent company Geely Holding, intends to fully integrate Zeekr into Geely Auto, but the takeover move surprised the market just a year after Zeekr's U.S. listing. Despite investor pushback, analysts note Geely Auto's majority stake could allow the privatization to proceed without majority shareholder approval, though Zeekr's current market price remains above the offer, reflecting skepticism about the proposed deal's valuation. Talks between Geely and the special committee are ongoing amid these disputes over Zeekr's worth and the broader strategic implications for Geely's other units.