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Geely Automobile (0175) said on Wednesday it plans to buy the 34.3 percent stake in electric vehicle maker ZEEKR it does not already own, sending the latter's stock soaring more than 10 percent in premarket trading in New York.

Automaker Geely is offering to pay US$25.66 (HK$200.15) per ZEEKR American Depositary Share (ADS), a premium of 13.6 percent to the stock's closing price on Tuesday.

Zeekr's ADSs jumped 11.11 percent to US$25.10 in US premarket trading.

As of May 7, Geely held around 65.7 percent of the total issued and outstanding share capital of ZEEKR, it said. Its offer-per-ADS values ZEEKR at US$6.52 billion.

Geely expects to create a unified platform and eliminate redundant investments as well as reduce costs through the deal.

It said it plans to finance the deal by issuing new shares, using its cash reserves and, if necessary, via debt financing.

Reuters

Geely eyes privatization of Chinese unit Zeekr