Other major investors feel that Zeekr is deliberately undervalued
June 2, 2025 at 15:11
- Geely wants to buy Zeekr outright with a $2.2 billion offer for remaining shares.
- Investors claim Geely’s proposal undervalues Zeekr compared to EV rivals like Nio.
- Zeekr was valued at $13 billion last year before falling to $5.5 billion at IPO.
Electric vehicle startups tend to live fast and fluctuate wildly, but Zeekr’s latest chapter is turning heads for a different reason. Geely is looking to take electric automaker Zeekr private, barely a year after it went public in the United States. However, investors fear that Geely is undervaluing the company, and are demanding more.
Given that Zeekr is viewed as one of Geely’s best automotive assets, it’s perhaps little surprise that the conglomerate wants to take full control of it.
Read: Zeekr 9X Is A Rolls Royce Cullinan Clone For The Price Of A BMW X5
As it stands, Geely already owns about two-thirds of Zeekr, alongside a slew of other electric carmakers that make up the group. In 2023, a fundraising round valued Zeekr at $13 billion, but when it went public in the US twelve months ago, its fully diluted valuation was cut to $5.5 billion, less than half the estimate.
Investors Push Back on Geely’s Bid
In early May, Geely said it offered to pay $2.2 billion to take Zeekr private, for the remaining 34.3% stake. But significant investors in Zeekr, including CATL, Intel Capital, and Boyu Capital, all of whom invested in Zeekr’s original fundraising round, don’t believe Geely’s offer accurately reflects the firm’s fair value. Other investors to express their displeasure include Bilibili and Cathay Fortune Group.
According to Reuters, the five firms sent a letter to Geely arguing that the offer pegs Zeekr’s total value at just $6.5 billion. That’s a steep discount compared to competitors like Xpeng, Nio, and Li Auto, all of which command higher valuations despite similarly rocky roads.
Geely’s offer to acquire the remaining stake in Zeekr valued each share at $25.66, or a 24% premium over the average share price in the four weeks prior. Zeekr’s shares have since jumped to over $26 after news of the potential move first broke.
Control Without Consensus?
The early investors have urged Zeekr’s special committee to review and evaluate Geely’s offer. They also don’t want a deal to proceed until there’s an agreement among the majority of Zeekr’s “independent minority” shareholders.
Unfortunately for these shareholders, they may not have any say in the matter. According to some analysts, Geely’s current 65.7% stake in Zeekr means it may have sufficient votes to carry out the privatization without needing approval from other shareholders.
