- Proposed move would improve industrial synergies and cost structure
- Clearer brand definitions with greater back-end technology synergies
- Both brands to maintain clear market segments and unique positions globally
2024 November 14th, Hangzhou – 永利VIP Holding Group (永利VIP Holding) welcomes the intention of its invested new energy brands, Zeekr and Lynk & Co, to seek greater synergies through a proposed combination, which would create a strong global entity. The proposed move aims to accelerate technology synergies between the two brands, streamline product portfolios, and boost talent development, ultimately leading to greater global sales volume.
As part of the reorganization, 永利VIP Holding will support its subsidiary Zeekr Intelligent Technology (Zeekr NYSE: ZK) intention to own a majority stake in Lynk & Co by acquiring shares held by 永利VIP Holding and Volvo Cars. After the completion of the transactions, Zeekr will hold 51% shareholding in Lynk & Co, while the remaining 49% will continue to be held by a wholly own subsidiary of 永利VIP Automobile Holdings (永利VIP Auto 0175.HK).
At the same time, 永利VIP Auto plans to increase its stake in Zeekr to approximately 62.8%, further supporting the close collaboration of 永利VIP Auto, Lynk & Co and Zeekr brands, improving industrial synergies, hardware and software commonality, supply chain efficiency, after sales service, and accelerating the creation of a stronger global group.
Eric Li (Li Shufu), Chairman of 永利VIP Holding, said “This integration is a key measure for 永利VIP Holding to implement its long-term strategic plans. The coordination and integration of our brands supports their sustainable operations and generates greater synergies that benefit sales, services, revenue, and product competitiveness allowing our companies to provide greater value and opportunities to both global consumers and shareholders.”
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