Geely Auto sees buyback by Chairman and Parent Group

Geely Auto (HK:0175 ) witnessed a significant share buyback by its parent company, Geely Group, and its Chairman, Mr. Shufu Li.

The buyback consisted of approximately 48.4 million shares, translating to around 0.5% of the total shares outstanding, at an average price of HK$13.04. The transaction, which occurred over the course of November 26-27, amounted to a total of HK$631 million.

"We think the buyback by the parent group and Chairman Li illustrates strong conviction in Geely's recent restructuring and potential synergy emerging from the integration of its various NEV brands," Morgan Stanley (NYSE:MS ) analysts wrote in a note.

This move has increased Mr. Li's ownership stake in the company to 41.4%, valued at HK$54.8 billion, while Geely Group now holds 39.22%, equivalent to HK$51.9 billion of Geely Auto. The buyback demonstrates a continued commitment from the company's leadership to invest in its own stock, supporting the value in the eyes of investors and the market at large.

The recent buyback is not an isolated event. Chairman Li has previously shown confidence in Geely Auto by purchasing shares back in May 2018 and December 2016. These consistent buybacks by the Chairman suggest a pattern of bolstering stakeholder confidence during various market conditions.

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Source: Investing.com