Asia Tech Wire (Nov 14) -- Chinese auto group Geely Holding is reorganizing its electric vehicle unit Zeekr (NYSE: ZK) and premium car brand Lynk & Co.

Volvo Car, the Swedish automaker owned by Geely Holding, announced Thursday that it is selling its 30% stake in Lynk & Co to Zeekr.

The consideration for the deal is 5.4 billion yuan in cash, with 70% paid at closing and the remaining 30%, plus interest, one year after the deal closes.

Volvo Car expects the transaction to close in the first quarter of 2025.

On the same day, Geely Holding announced that it will transfer its 11.3% stake in Zeekr to its subsidiary Geely Auto (0175.HK).

Upon completion of the transaction, Geely Auto's stake in Zeekr will increase to about 62.8%.

Geely Holding also said it has optimized the shareholding structure of Lynk & Co in order to drive full strategic synergies between Zeekr and Lynk & Co.

Following the optimization, Zeekr will hold 51% of Lynk & Co, and a wholly-owned subsidiary of Geely Auto will continue to hold the remaining 49%.

Lynk & Co was founded in August 2017, when Geely Auto, Volvo Car and Geely Holding held 50%, 30% and 20% respectively.

And Zeekr was formed in March 2021, when Geely Auto and Geely Holding held 51% and 49% respectively.

Volvo Car's latest statement means it will no longer hold a stake in Lynk & Co.

Geely Auto also announced Thursday that it intends to increase its stake in Zeekr to 62.8% for $806 million.