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].

Group 1 - The company announced a non-binding offer to privatize Zeekr, aiming to enhance resource integration, reduce costs, and improve competitiveness [1] - The proposed valuation for Zeekr is $2.566 per share or $25.66 per American Depositary Share (ADS), with options for shareholders to receive cash or new shares [1] - The offer represents a premium of approximately 13.6% over the last trading price of the ADS on the NYSE and a 20.0% premium over the volume-weighted average price over the last 30 trading days [2] Group 2 - The company currently holds about 65.7% of Zeekr's issued share capital [2] - If the privatization proposal is completed, Zeekr will become a wholly-owned subsidiary of the company and will be delisted from the NYSE [2]

Core Viewpoint - 3G Capital is set to acquire Skechers for approximately $9.4 billion in cash, offering shareholders two options for the buyout, with a significant premium over the recent stock price [2] Group 1: Acquisition Details - The acquisition will allow Skechers to become a private company, maintaining its current leadership team [2] - Shareholders can choose between a full cash buyout at $63 per share or $57 in cash plus equity in the privatized parent company [2] - The transaction is expected to be completed in the third quarter of this year [2] Group 2: Financial Performance - Skechers reported sales of $8.97 billion in 2024, with Q1 2025 sales reaching $2.41 billion, a 7.1% increase year-over-year, although slightly below analyst expectations [3] - The company has withdrawn its financial guidance for the year due to uncertainties stemming from global trade policies [3] Group 3: Market Presence - The U.S. market accounts for nearly 40% of Skechers' global sales, while Vietnam provides a significant portion of its manufacturing capacity [3] - Skechers has established nearly 3,500 physical stores in China, which is its largest overseas market [3] - The company plans to continue its strategic initiatives in China, emphasizing its commitment to the market [3]

Core Viewpoint - New Oriental Holdings plans to privatize New Oriental Energy through its wholly-owned subsidiary, New Energy (Hong Kong) Investment Co., Ltd, with a theoretical total transaction value exceeding HKD 590 billion [1][2]. Group 1: Transaction Details - The agreement stipulates that for every share held, shareholders will receive 2.9427 new H-shares of New Oriental Holdings and cash payment at HKD 24.50 per share [2]. - The theoretical total value of H-shares and cash payment is estimated at approximately HKD 80 per share based on the median valuation by the assessment agency [2]. - The total theoretical value of the transaction is projected to be HKD 595.19 billion if all options are not exercised, and HKD 599.24 billion if all options are exercised [3]. Group 2: Business Operations - New Oriental Energy operates gas pipeline infrastructure across 261 cities, serving over 31 million households and 270,000 business customers [4]. - The company is expected to achieve revenue of approximately HKD 116.1 billion and a net profit of about HKD 6.1 billion in 2024 [4]. Group 3: Financial Implications - The transaction will lead to an increase in the company's debt levels and debt-to-asset ratio, with projections indicating an increase from 54.30% to 67.08% post-transaction [5]. - The company plans to finance the transaction through a combination of self-funding and bank loans, having already signed agreements for overseas loans [5].