Core Viewpoint - Dalian Wanda Group is advancing its privatization process, offering shareholders HKD 0.62 per share, leading to a delisting from the Hong Kong stock market [1] Group 1: Privatization Details - The privatization plan will result in Dalian Wanda Holdings and DeMao holding approximately 96.13% and 3.87% of Dalian Wanda Group's shares, respectively [1] - Following the completion of the transaction, Dalian Wanda Group will apply for the withdrawal of its listing status on the Hong Kong Stock Exchange [1] Group 2: Strategic Implications - This privatization is viewed as a critical optimization of Dalian Wanda Holdings' strategic layout during a period of deep adjustment in the real estate industry [1] - The main objective is to integrate real estate business resources, enhance asset allocation capabilities, and fully leverage the synergy potential among diverse business operations [1] Group 3: Financial Performance - Dalian Wanda Group is projected to achieve an annual revenue of CNY 19.831 billion in 2024, reflecting a year-on-year growth of 49.4%, which is particularly impressive in the current context [1] - The advancement of the privatization process is seen as a key step for Dalian Wanda Holdings to restructure its real estate business strategy and focus on long-term value [1] Group 4: Operational Enhancements - The privatization will allow Dalian Wanda Holdings to optimize its governance structure, reduce operational costs, and improve decision-making efficiency [1] - Additionally, it will facilitate the integration of asset resources, enhance market competitiveness, and accelerate the realization of its positioning as an "excellent urban operator and provider of quality life services" [1]

Core Viewpoint - The valuation of Zeekr (JK.NYSE) has decreased by nearly half in less than two and a half years, with Geely Automobile (00175.HK) announcing a privatization deal costing approximately $2.4 billion [1][2]. Valuation Decline - Geely's acquisition price for Zeekr shares is set at $2.687 per share, translating to a total market value of about $6.88 billion, which is close to a "halving" from the $13 billion valuation during the A-round financing in February 2023 [2][4]. - The A-round financing raised $750 million at a post-money valuation of $13 billion, with participation from notable investors including Mobileye and CATL [2][3]. Industry Context - The global automotive market, particularly in the electric vehicle sector, is experiencing intense competition, leading to downward pressure on valuations across the industry [1][4]. - Analysts suggest that companies need to quickly integrate resources and avoid redundant investments to remain competitive [1][8]. Privatization Rationale - Geely's decision to privatize Zeekr reflects a shift from expansion to resource integration and cost reduction, aiming to eliminate complexities associated with minority shareholders [6][8]. - The privatization will allow Zeekr to become a wholly-owned subsidiary of Geely, enhancing decision-making efficiency and resource allocation [6][7]. Strategic Advantages - Full ownership of Zeekr will facilitate a unified strategic deployment across Geely's brands, improving collaboration and reducing conflicts with minority shareholders [7][8]. - The move is expected to maximize Zeekr's contribution to market share and profitability, allowing for more agile responses to economic and market challenges [7][8].

Core Viewpoint - The valuation of Zeekr (JK.NYSE) has decreased by nearly half in less than two and a half years, prompting Geely Automobile (00175.HK) to announce a privatization plan for Zeekr at a cost of approximately $2.4 billion [1][2][8]. Group 1: Valuation and Financial Details - Geely's acquisition will involve buying all remaining shares of Zeekr, with shareholders given the option of cash or shares as compensation, totaling around $2.4 billion (approximately 172 million RMB) [2]. - Geely currently holds 62.8% of Zeekr, and the privatization price is set at $2.687 per share, which is significantly lower than the $29.76 closing price on July 17, indicating a drastic drop in valuation [2][4]. - Zeekr's valuation fell from $13 billion during a February 2023 funding round to approximately $6.88 billion based on the privatization price, reflecting a near "halving" of its value [2][4]. Group 2: Market Context and Strategic Considerations - The global automotive market, particularly in the electric vehicle sector, is experiencing intense competition, leading to downward pressure on valuations across the industry [1][6][8]. - The decision to privatize is seen as a shift from expansion to resource integration, aimed at reducing costs and eliminating complexities associated with minority shareholders [6][8]. - Full ownership of Zeekr will enhance decision-making efficiency and resource allocation, allowing for a unified strategy across Geely's brands [6][7]. Group 3: Future Implications - The privatization is expected to streamline operations and improve competitive positioning in the global electric vehicle market, as it will eliminate potential conflicts with minority shareholders [6][7]. - Geely aims to create a unified platform for operations, which is anticipated to lead to better synergy between Zeekr and other Geely brands, ultimately enhancing overall operational efficiency [6][7][8].

Core Viewpoint - Geely Automobile is moving to privatize Zeekr by acquiring all issued and outstanding shares, aiming to create a unified listing platform and enhance competitiveness in the global electric vehicle market [1][2] Group 1: Privatization Details - The agreement allows Zeekr shareholders to choose between cash or shares as compensation for their holdings, with cash options set at $2.687 per share for Zeekr shares and $26.87 per share for Zeekr American Depositary Shares [1] - The share price for the compensation shares is set at HKD 17.15, representing a premium of approximately 2.4% over the last closing price before the non-binding offer [1] Group 2: Strategic Advantages - The privatization will increase Geely's ownership of Zeekr from 62.8% to full ownership, providing significant strategic, operational, and financial advantages [2] - Full ownership is expected to simplify operations, unify strategic direction, enhance synergies, and reduce compliance burdens, ultimately improving efficiency, innovation capability, and profitability [2]

Core Viewpoint - ESR, Asia's largest logistics real estate company, has officially delisted from the Hong Kong Stock Exchange and transitioned into a privately held entity, marking a significant step in its privatization process [1][2] Group 1: Privatization Process - The privatization proposal was approved under Section 86 of the Companies Law and will take effect on June 30, 2025, following court approval on June 20 [1] - As of June 30, ESR received valid acceptances for approximately 99.3% of its total share options, indicating strong support for the privatization [1] Group 2: Management Changes - Following privatization, ESR has undergone a significant management overhaul, with Brett Robson appointed as the independent board chairman and Phil Pearce as president [2][3] - New appointments also include Matthew Lawson as CFO, Josh Daitch as Chief Investment Officer, and David Matheson as Chief Investment Officer for Group Strategy and Investment [3][4] Group 3: Strategic Focus - ESR aims to accelerate its strategic transformation post-privatization, focusing on core logistics and data center business areas to leverage its platform advantages in the Asia-Pacific region [2][7] - The management changes are intended to align with long-term strategic goals, allowing for more flexibility in decision-making without the pressures of public market performance [7][8] Group 4: Employee Transition - Employees have been informed about the privatization process, with company-controlled desktop settings to address potential concerns regarding the transition [5][6] - The new management team is expected to enhance operational efficiency and attract top talent through improved compensation and career development opportunities [8]

Group 1 - Japan is leading the recovery of the Asian M&A market, with a total transaction value of $232 billion in the first half of 2025, driven by privatization deals, foreign investments, and private equity activities [1] - The value of transactions involving Japanese companies increased more than threefold in the first half of the year, while the total M&A value in Asia reached $650 billion, more than doubling compared to the same period last year [1] - Japanese companies are undergoing management reforms to address long-standing valuation issues, attracting interest from foreign and activist investors [1] Group 2 - Major transactions include Toyota's subsidiaries and NTT acquiring private listed subsidiaries for $34.6 billion and $16.5 billion respectively, marking them as some of the largest deals globally [2] - SoftBank led a new funding round for OpenAI amounting to $40 billion, the largest private tech financing ever [2] - Despite global economic uncertainties, Japanese companies continue to seek growth opportunities in overseas markets, with strong demand across various sectors [2] Group 3 - Challenges in Japan's M&A activity include global economic uncertainty affecting future business outlook assessments, leading to valuation discrepancies between buyers and sellers [3] - Companies are under pressure to divest non-core business units, with private equity funds increasingly acquiring these segments, exemplified by Seven & I Holdings selling parts of its business for approximately $5.5 billion to Bain Capital [3] - There are numerous potential transaction opportunities involving private equity firms, including a potential acquisition of Japanese cybersecurity company Trend Micro, valued at approximately $8.54 billion [3] Group 4 - Private equity funds are viewed as ideal buyers for taking public companies private [4]

Core Viewpoint - Geely Auto has submitted a privatization proposal for Zeekr, aiming to acquire the remaining 34.4% of shares to make Zeekr a wholly-owned subsidiary and delist it from the NYSE, with a proposed purchase price of $25.66 per share, representing a 13.6% premium over the last closing price [3][4]. Summary by Sections Privatization Proposal - Geely currently holds approximately 65.7% of Zeekr's equity and plans to buy out the remaining shares [3]. - The acquisition price of $25.66 per share is a 13.6% premium compared to Zeekr's closing price of $22.6 on May 6 [3][4]. - Shareholders can choose to accept cash or stock exchange, with the stock exchange option offering 12.3 shares of Geely for each Zeekr ADS [3]. Reasons for Privatization - Zeekr's valuation is significantly lower than other new energy vehicle companies, with a P/S ratio of 0.7 compared to 0.9 for the automotive business and 1.5 for competitors like Xpeng [4][6]. - The market perceives Zeekr as undervalued, especially given its initial strong sales performance and the expectation of a P/S ratio of at least 1 for its automotive business [6][7]. Current Challenges - Zeekr's valuation has declined, with projected sales for 2025 being around 500,000 units, leading to an estimated valuation of 0.4-0.5 times [7][8]. - The company has been heavily reliant on Geely for support, leading to a high debt-to-asset ratio of 1.31, one of the highest in the industry [8][9]. - Internal coordination issues may arise post-merger with Lynk & Co, as both brands have overlapping strategies and product lines [9][10]. Sales Performance - Zeekr's sales have been declining, with the Zeekr 001 model dropping from 14,000 units per month to 3,000 units, and the Zeekr 007 also experiencing a significant drop [12][13]. - The competitive landscape has intensified, with rivals like Xiaomi and Xpeng gaining market share, further impacting Zeekr's sales [12][13]. Financial Implications - Zeekr's cash flow is low at approximately $9 billion, compared to competitors like Xpeng and NIO, which have significantly higher cash reserves [15]. - The total acquisition cost of $2.24 billion could strain Geely's cash flow, which was $43.6 billion at the end of 2024, potentially requiring new financing methods [16].

Core Viewpoint - Skechers has agreed to be acquired by Brazilian private equity firm 3G Capital for over $9 billion, marking the end of its more than 20-year public listing and transitioning to a private company [1][2] Group 1: Acquisition Details - The acquisition price is set at $63 per share, and the deal has been unanimously approved by Skechers' board, expected to close in the third quarter of this year [1] - Following the announcement, Skechers' stock price surged by 25%, achieving the highest intraday increase in over seven years [1] Group 2: Market Context - The strategic shift is seen as a response to the complex international trade environment, particularly the increasing tariffs imposed by the U.S. government, which have significantly pressured U.S. footwear companies like Skechers [2][4] - Skechers has not provided revenue guidance for the upcoming quarter due to the unpredictable nature of the current environment, as stated by CFO John Vandermore [2] Group 3: Impact of Tariffs - Skechers has warned that U.S. government tariff policies could substantially increase operational costs, leading to price hikes and reduced sales [4] - A coalition of 76 footwear brands has expressed concerns to the White House, stating that the tariffs pose a "survival threat" to the footwear industry [4] Group 4: Performance in China - Skechers operates nearly 3,500 stores in China, its largest overseas market, and despite a poor performance this year, it continues to show strong growth globally [5] - The company projects nearly $9 billion in sales for 2024, reflecting a 12% year-over-year growth, with revenue nearly doubling over the past five years [5] - Skechers has indicated that the privatization will not impact its operations in China, where it aims to continue exploring new growth opportunities [5]

Core Viewpoint - Geely has proposed a non-binding offer to privatize Zeekr, aiming to consolidate its automotive business and enhance operational flexibility amid uncertainties in U.S.-China relations [1][2][9]. Group 1: Geely's Proposal and Market Reaction - Geely submitted a non-binding offer to acquire all outstanding shares of Zeekr, with a proposed price of $2.57 per share or $25.66 per American depositary share [4][5]. - Following the announcement, Geely's stock rose by 5%, reaching HKD 17.88 per share, with a market capitalization of approximately HKD 180 billion [3]. - The proposed buyback price represents a premium of about 13.6% over the previous day's closing price but is still below Zeekr's initial listing price [5][6]. Group 2: Strategic Implications of the Merger - If the acquisition is successful, Zeekr will fully merge with Geely, positioning Zeekr as a global luxury tech brand within Geely's portfolio, which includes Lynk & Co, Galaxy, and China Star [2][10]. - The consolidation aims to strengthen Geely's control over its sub-brands and improve operational efficiency, reminiscent of past strategies that led to significant sales growth [14][15]. Group 3: Financial Performance and Market Challenges - Zeekr's financial performance has been under pressure, with a net loss of CNY 5.791 billion in 2024, exceeding the funds raised during its IPO [12]. - The brand's stock has fluctuated significantly, with a low of $13 per share and a peak of $33 per share over the past year, reflecting market volatility and investor sentiment [4][12]. - Despite a 29.9% reduction in losses year-over-year, Zeekr's asset-liability ratio exceeded 130%, indicating financial strain [12]. Group 4: Future Outlook and Organizational Changes - The potential privatization could lead to further organizational adjustments within Geely and Zeekr, as the company aims to streamline operations and enhance collaboration across brands [16][17]. - Industry analysts suggest that the move may also be a strategic response to the broader trend of privatizations in the Hong Kong market, driven by undervaluation and liquidity issues [10].

Core Viewpoint - Geely Auto has submitted a privatization proposal for Zeekr, aiming to acquire the remaining 34.4% of shares to make Zeekr a wholly-owned subsidiary and delist it from the NYSE, with a proposed purchase price of $25.66 per share, representing a 13.6% premium over the last closing price of $22.6 [1][2][18]. Summary by Sections Acquisition Details - Geely currently holds approximately 65.7% of Zeekr's equity and plans to buy the remaining shares from minority shareholders [1]. - The acquisition price of $25.66 per share is a significant premium compared to Zeekr's recent trading price [1]. - Shareholders have the option to receive cash or exchange their shares for Geely stock at a ratio of 12.3 shares of Geely for each Zeekr ADS [1][2]. Reasons for Privatization - Zeekr's valuation is perceived to be significantly lower than that of other new energy vehicle companies, with a P/S ratio of 0.9 compared to competitors like Xiaopeng at 1.5 [3][5]. - The market has consistently undervalued Zeekr, leading to the decision for privatization as a means to address this issue [5]. - Zeekr's reliance on Geely for resources and production has resulted in a high debt-to-asset ratio, which is unattractive to investors [6][8]. Financial Implications - The total acquisition cost is estimated at $2.24 billion, which could exert cash flow pressure on Geely, as it represents 37% of its cash flow as of the end of 2024 [18]. - Geely plans to finance the privatization through a combination of new stock issuance, cash reserves, and debt financing if necessary [2][18]. Strategic Considerations - Geely aims to enhance internal resource integration and operational efficiency post-privatization, addressing internal conflicts and improving competitiveness [17]. - The merger with Lynk & Co. has not gone as planned, with ongoing production of fuel vehicles potentially confusing the brand's positioning in the electric vehicle market [10][16]. - Zeekr's declining sales and competitive position in the market have raised concerns about its future viability, necessitating a strategic overhaul [12][15].