Geely Automobile (HKG:0175) will increase its ownership in its NYSE-listed electric vehicle brand ZEEKR Intelligent Technology by acquiring the stake held by its parent firm.
Geely Automobile, through subsidiary Luckview Group, will buy GIHK's 11.3% equity interest in Zeekr for $806.1 million, according to a Thursday filing with the Hong Kong Exchange.
GIHK is owned by Zhejiang Geely Holding Group, which holds 41% of Geely Automobile.
Upon deal completion, Geely Auto's shareholding in Zeekr will increase to 62.8% from 51.5%.
In a separate disclosure, Geely said Zeekr would buy the combined 50% stake in Chinese-Swedish vehicle brand LYNK & Co. held by Zhejiang Geely and Volvo Cars (China) for 9 billion yuan.
Once the transaction closes, Zeekr will increase Lynk's registered capital by subscribing to new shares amounting to 367.3 million yuan.
This would boost Zeekr's stake in Lynk to 51%, making the sister brand its subsidiary.
"Through strategically integrating the resources of ZEEKR and LYNK & CO, the Group can reduce overlapping investment in various segments and strengthen the synergies in brands and products, technology, supply chain, marketing and service, and international market expansion," Geely said in a statement.
