ZEEKR (ZK US): Geely Firms Low-Balled Offer. It Is What It Is

• Back on the 7th May, Geely Auto (175 HK), China’s second-largest carmaker, made a US$25.66/ADS non-binding proposal for 62.8%-held ZEEKR (ZK US), a premium Chinese electric vehicle manufacturer

• Yesterday, Geely tweaked and firmed terms at US$26.87/ADS, a 4.7% bump to the original NBIO, and ~3.4% below ZEEKR's last close. ZEEKR promptly gained 2.4% on the news.

• ZEEKR shareholders also have the option to receive Geely scrip. Given Geely's and Li Shufu's (10.61%) holdings - neither are required to abstain on voting - this Offer is done.

The Trade:

• Trading through the cash terms; and right at the scrip terms.

• Unless already in, or have a strong conviction Geely needs to bump (I don't), not a lot to be done.

• This scrip option is a cross-border trade. IF inclined, look to short Geely late in the day, and buy ZEEKR early in the US day.

This insight is labelled bullish as I expect the Offer to get up