Geely’s Mobile Phone Company to Acquire 79.09% Stake in Meizu
According to an announcement released by the State Administration for Market Regulation, Hubei Xingji Times Technology Co., Ltd., a smartphone business company owned by Geely, signed an agreement with smartphone maker Meizu and its shareholders to acquire a 79.09% equity stake in the company.
Chinese automobile company Geely officially announced its entry into the smartphone field in September last year with the smartphone project headquarters centered in the Wuhan, Hubei Province. The company’s efforts are focused on the high-end smart smartphone and intend to serve the global market. Xingji Times was established in September 2021, and Li Shufu, founder of Geely, holds 57.8452% of the shares.
Meizu was established in March 2003 with a focus on the R&D of smartphone software and hardware. The company is also engaged in smart wearable devices, smart home appliances, fashion consumption and electronic products.
Before this transaction, Huang Xiuzhang, founder of Meizu, and Taobao China held 49.08% and 27.23% shares of Meizu respectively. After the transaction, Huang’s shareholding in Meizu was reduced to 9.79%, and Taobao China withdrew its shareholding and control in the company. The purchaser Xingji Times will hold a 79.09% equity stake in Meizu and gain independent control of it.
Meizu also told media outlet Tencent Technology on Monday that Xingji Times, led by Li Shufu, signed a strategic investment agreement. Yet, the transaction still needed to go through the approval procedures by relevant regulatory authorities and details of the transaction are still undergoing negotiation.
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Aside from Geely, NIO and Tesla also have plans to make smartphones. William Li, founder of NIO, also said in a media interview recently that NIO would launch a smartphone in the near future to match with the firm’s electric vehicles.