ZEEKR Intelligent Technology Holding Ltd (ZK) Price

ZEEKR Privatization by Geely: Implications for Shareholders and the EV Market

ZEEKR Intelligent Technology Holding Limited (NYSE: ZK) is set to go private, becoming a wholly-owned subsidiary of Geely Automobile Holdings Limited. This move, approved by ZEEKR shareholders, aims to consolidate resources and enhance operational efficiency within the Geely group, but it limits future upside and shareholder influence for current public investors in ZK. ZEEKR Shareholders Approve Geely Privatization Bid ZEEKR Intelligent Technology Holding Limited (NYSE: ZK), the premium new energy vehicle group, announced on September 15, 2025, that its shareholders have overwhelmingly approved the previously announced Agreement and Plan of Merger with Geely Automobile Holdings Limited. This approval paves the way for ZEEKR to become a privately held company wholly owned by Geely, leading to its delisting from the New York Stock Exchange (NYSE) by the fourth quarter of 2025. Approximately 96.8% of ZEEKR's total outstanding ordinary shares, including those represented by American Depositary Shares (ADSs), participated in the extraordinary general meeting, with about 94.2% of the total votes cast in favor of the merger. The transaction marks a significant shift for ZEEKR, which only had its initial public offering (IPO) on the NYSE in May 2024. Transaction Details and Shareholder Options Under the terms of the revised offer, Geely will acquire all outstanding ZEEKR shares and ADSs at $2.687 per ordinary share or $26.87 per ADS. This represents a 18.9% premium over ZEEKR's closing ADS price on May 6, 2025, and a 25.6% premium over its 30-day volume-weighted average price prior to the initial proposal. Shareholders have the option to receive either the cash offer or a share swap, entitling them to 12.3 newly issued Geely shares per ADS. Based on Geely's trading price of HKD 18.44 (approximately $2.37) per share, the economic value of the share exchange is approximately $29.15 per ADS. The offer price of $26.87 per ADS is notably 28% higher than ZEEKR's IPO price of $21 per share. However, for current ZEEKR shareholders, the acquisition price is considered by some analysts to be below long-term fair value estimates. Analyst projections for a fair acquisition price have ranged from $13.65 based on 2025 figures to $55.35 based on 2026 earnings, averaging around $34.50. This places Geely's offer nearly 50% lower than this average. Given these dynamics and the impending delisting, the recommendation for current ZK shareholders is to sell their shares, as the stock's price will subsequently track Geely's performance, limiting independent upside. Geely's Strategic Imperatives and Operational Control Geely's decision to take ZEEKR private is driven by a comprehensive strategy to enhance operational efficiency, consolidate resources, and navigate an increasingly challenging global electric vehicle (EV) market. With Geely already holding a significant majority of 62.5% of ZEEKR's voting rights, the move ensures full operational control and aligns with its "One Geely" strategy, aimed at streamlining operations and eliminating redundancies across its automotive portfolio. This consolidation is expected to save Geely "several billion yuan" annually by fostering technology sharing, supply chain rationalization, and coordinated market strategies. The privatization also affords ZEEKR greater flexibility to invest in research and development (R&D), autonomous driving systems, and international expansion, particularly into Europe, without the immediate pressures of quarterly earnings reports associated with public markets. Furthermore, the move is seen as a way to mitigate geopolitical risks, especially in light of rising U.S. import tariffs on Chinese EVs. Broader EV Market Context and Implications This privatization highlights a broader trend within the global EV industry, which is transitioning from a phase of rapid growth to one characterized by intensified competition and a shift from "scale expansion" to "efficiency competition." The market is entering a "survival of the fittest" phase, necessitating consolidation. Geely's strategic move underscores how Chinese EV manufacturers are recalibrating their strategies in response to escalating trade barriers and geopolitical tensions. While ZEEKR reported impressive financial improvements leading up to the privatization, including a 46.9% year-on-year revenue surge to $10.4 billion in 2024 and improving gross margins that reached 19.1% in Q1 2025, the company still posted a net loss of $764 million in 2024, though this represented a 29.9% improvement over the previous year. Looking Ahead: ZEEKR's Future as a Private Entity As a wholly-owned subsidiary, ZEEKR will be fully integrated into Geely's corporate structure. This integration is anticipated to enable ZEEKR to respond more swiftly to market changes and concentrate on long-term strategic objectives, including accelerating the development of next-generation models and expanding into international markets. ZEEKR has set an ambitious target of 710,000 vehicle deliveries for 2025, representing a 40% increase. The privatization also solidifies the strategic integration efforts, building on ZEEKR's acquisition of a 51% stake in Lynk & Co in February 2025. While the deal has been described by some as "not impressive but OK" for shareholders, it represents a clear strategic direction for Geely to enhance its competitiveness in the premium EV segment and navigate the complexities of the global automotive landscape.