Shanghai (ZXZC)- Geely Automobile Holdings Limited (“Geely Auto” or “the Company”) entered into a framework agreement with Geely Group Limited (“Geely Group”) on Oct. 18 for the proposal to acquire from the latter 220 million shares of ZEEKR, which represented around 10% of ZEEKR's shares issued as of the agreement signing date, according to Geely Auto's announcement.

Photo credit: ZEEKR

The consideration of the potential transaction should be agreed by both Geely Auto and Geely Group and determined with regard to the post-money valuation of ZEEKR in the Pre-A round financing.

Geely Auto stated that it intends to satisfy the consideration by a combination of cash and the consideration shares to be issued by the Company, which account for roughly 2% of Geely Auto's issued share capital.

The potential transaction, if completed, will enable the interests of Geely Auto and its subsidies in ZEEKR to be raised to around 58% from 48%.

According to Geely Auto, ZEEKR, which is fully named ZEEKR Intelligent Technology, was unveiled in March 2021 as Geely’s new premium all-electric car company and was initially co-invested by Geely Auto (51%) and Zhejiang Geely Holding Group (49%). Li Shufu serves as chairman of ZEEKR with An Conghui appointed as CEO.

ZEEKR signed an agreement on August 27 to issue and allot to five investors a total of 126,470,585 Series Pre-A Preferred Shares, at a consideration of $500 million. Those investors, who are all independent third parties, include Intel Capital Corporation, CATL, Cathay Fortune Corporation, Bilibili, and Boyu Capital. They would account for roughly 5.6% of the enlarged issued share capital of ZEEKR after the investment is completed.

The ZEEKR 001, the first ZEEKR-branded production model, rolled off the production line on Oct. 19 and is scheduled for delivery from Oct. 23. According to the EV maker's planning, ZEEKR will launch 6 all-new models over the next three years and aims to hit an annual sales target of 650,000 units by 2025.