On may 7,Hong kong stock listed companyHolding Co., Ltd. announced that it plans to acquire itsAll shares have been issued.At present, it holds about 65.7% of the shares. If the transaction is completed, it will be completely merged with the realization, and Krypton will be privatized and delisted from the NYSE.
Image source: company announcement
Li Shufu, chairman of Geely Holding Group, said that in the face of fierce market competition and increasingly complex economic environment, we will continue to promote the integration of automobile business and return to a Geely.
Krypton is the ninth listed company of Li Shufu, which was listed on the New York Stock Exchange on May 10th, 2024. After nearly a year, Krypton will be delisted from the NYSE.
Wind data shows that as of 22:25 on May 7, Beijing time, the share price of US stocks rose by more than 10%.
Geely Automobile plans to privatize Krypton.
On the evening of May 7, Geely Automobile announced that in order to promote the deep integration and efficient coordination of internal resources, eliminate repeated investment, reduce costs, enhance the competitiveness of enterprises, and create long-term value, the company submitted a non-binding quotation letter to Krypton on May 7, initially indicating its intention to carry out privatization proposals and acquire all the issued and outstanding Krypton shares and American Depositary Shares (except the beneficial owners of the group).
Geely Automobile suggested that Krypton be valued at $2.566 per share or $25.66 per American Depositary Share. This price is about 13.6% higher than the closing price of American Depositary Shares in NYSE on the last trading day, and 20% higher than the weighted average price of American Depositary Shares in NYSE during the last 30 trading days up to the last trading day.
Geely Automobile said that the company holds about 65.7% of the total issued and outstanding share capital. If the privatization proposal is implemented and completed, Krypton will become a wholly-owned subsidiary of the company, realize privatization and delist from the NYSE.
Geely Automobile said that it is expected that the privatization proposal will create a unified listing platform for the Group, and fully integrate extremely poor assets and resources, thus enhancing the competitiveness of the Group’s passenger car business. This will also help the group to determine the strategic direction of Krypton in the future to meet the global market and economic challenges. Extreme krypton is positioning high-endIt is of great strategic significance for the global electric vehicle technology brand in the market to wholly control Krypton.
Geely Automobile intends to finance the privatization proposal by issuing new shares, cash reserves and debt financing (if necessary).
Li Shufu voiced: Return to an auspicious time.
On the same day, Geely Holding Group, the parent company of Geely Automobile, issued a document saying that this move is an important step to focus on the main automobile industry, improve resource utilization efficiency and deepen brand synergy, which will strengthen Geely Automobile’s intelligence.Global competitiveness in automobile field.
Since last year, Geely Holding Group has accelerated the brand integration, with Geometric Automobile merged into Geely Galaxy, Link and Krypton merged, and Wing Zhen Automobile merged into Geely Galaxy. Geely Automobile’s Krypton brand is positioned as a global technology brand, Link brand is positioned as a global high-end brand, and Geely Galaxy and China Star are positioned as global mainstream brands.
In February of this year, Extreme Krypton completed the acquisition and capital injection, and established Extreme Krypton Technology Group. In 2025, Extreme Krypton Technology Group plans to achieve the annual sales target of 710,000 units, achieving a year-on-year growth of 40%, including 390,000 units of Lingke and 320,000 units of Extreme Krypton.
"All brands seek coordinated development while expanding market share, strengthen coordination in technology, products, supply chain, manufacturing, marketing and service, and international market expansion, improve the strength of technological innovation, and stimulate scale effect." Geely Holding Group said.
Li Shufu said: "In the face of fierce market competition and increasingly complex economic environment, we will judge the situation, continue to promote the integration of automobile business, return to a Geely, integrate technological advantages, improve innovation and profitability, continue to create long-term value, and build a leading intelligent electric vehicle group in the world. At the same time, we will continue to maintain close communication and cooperation with the US and international capital markets. "
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