Rumors that Geely‘s mobile phone production arm is purchasing Chinese language smartphone maker Meizu have in the end been showed in a regulatory submitting.
Hubei Xingji Shidai Generation Co Ltd, a Wuhan-based telephone maker based through Geely Preserving Crew Chairman Eric Li, plans to procure a 79.09 % stake in Zhuhai-based Meizu, an operator focus case printed through China’s State Management for Marketplace Legislation (SAMR) lately confirmed.
The SAMR is looking for feedback at the case, and the general public can publish comments between June 13 and June 22.
Previous to the transaction, Meizu founder Huang Xiuzhang and Alibaba’s Taobao China held 49.08 % and 27.23 % of the corporate’s fairness, respectively, consistent with the SAMR.
After the deal closes, Huang’s stake in Meizu will likely be lowered to 9.79 %, Taobao China will go out its stake possession and keep watch over of the corporate, and Xingji Shidai will grasp 79.09 % of the corporate.
Meizu was once one of the crucial first smartphone makers in China, having been based sooner than Xiaomi.
However within the final two years, annual shipments of Meizu telephones have fallen to about 1 million devices, neatly under the height of greater than 10 million devices or extra.
In 2021, Meizu’s proportion of China’s smartphone marketplace is under 5 %, the SAMR submitting confirmed.
In past due January, tech media outlet 36kr cited a couple of resources as pronouncing Xingji Shidai was once involved with Meizu about an acquisition for an unknown worth. The SAMR file launched lately didn’t expose the associated fee both.
Xingji Shidai signed a strategic cooperation settlement with Wuhan Financial and Technological Construction Zone on September 28 final 12 months, marking Geely’s authentic access into the mobile phone sector.
The corporate objectives to fabricate high-end smartphones to serve the worldwide marketplace, consistent with a prior press unlock despatched to CnEVPost.
It’s price noting that Geely isn’t the one automobile corporate concerned about coming into the mobile phone production sector.
There were rumors of NIO coming into the mobile phone production business since past due February. William Li, the corporate’s founder, chairman and CEO, mentioned all the way through an look on a chat display in past due March that NIO was once nonetheless within the analysis segment for making mobile phones, consistent with a information portal Sina on the time.
NIO’s shoppers wish to see a telephone that connects higher with vehicles, which brought about the corporate to check the business, Li mentioned.
This newsletter was once first printed through Phate Zhang on CnEVPost, a website online that specialize in new power automobile information from China.