Investor Dispute Over Geely's Lowball Offer for Zeekr

Geely's $2.2 billion proposal to privatize its premium electric vehicle arm, Zeekr, has sparked discontent among its early investors. Five major backers, including CATL and Intel Capital, argue the bid undervalues Zeekr's worth, suggesting it should be higher than the offered $6.5 billion valuation.

The investors have penned letters to Zeekr's board and a special committee assessing the offer, questioning its fairness. Geely, known globally for its acquisition of brands like Volvo, aims to integrate Zeekr fully into Geely Auto, where it already holds a two-thirds stake, under the umbrella of unlisted Geely Holding.

Despite the contention, analysts note Geely Auto's significant 65.7% stake could allow them to proceed without broader shareholder consent. Zeekr shares trade above the offer price, reflecting a market sentiment that echoes investors' valuation disagreements.

(With inputs from agencies.)