Core Viewpoint - ZEEKR Intelligent Technology Holding Limited has announced strategic integration transactions with various Geely entities, which include equity transfers and capital injections aimed at strengthening its position in the electric vehicle market [1][2][4]. Group 1: Strategic Integration Transactions - ZEEKR will acquire a 20% interest in LYNK & CO from Geely Holding for RMB3.6 billion and a 30% interest from VCI for RMB5.4 billion, with accrued interests from September 30, 2024 [2]. - The acquisition is subject to approval from independent shareholders of Geely Auto and Volvo [3]. - ZEEKR plans to fund the acquisition using its cash reserves and external financing [3]. Group 2: Capital Injection - ZEEKR will subscribe for increased registered capital in LYNK & CO at a price of RMB367,346,940, resulting in ZEEKR owning 51% of LYNK & CO post-transaction [4]. - Completion of the capital injection is also contingent on shareholder approvals and the completion of the equity transfer [5]. Group 3: Financial Consolidation - Upon completion of the transactions, LYNK & CO will become an indirect non-wholly-owned subsidiary of ZEEKR, and its financial results will be consolidated into ZEEKR's financial statements [6]. Group 4: Board and Advisory - ZEEKR's board formed a committee of independent directors to evaluate the transactions, which received a fairness opinion from its financial advisor, confirming the financial fairness of the transactions [7]. Group 5: Shareholding Changes - Geely International will sell approximately 11.3% of ZEEKR's issued share capital for US$806.1 million (approximately RMB5.84 billion), increasing Geely Auto's shareholding in ZEEKR to approximately 62.8% [9].
ZEEKR Announces Strategic Integration Transactions with Geely