Energy Monster's Private Battle: A Buyout Under Siege

SHANGHAI, CN – November 28, 2025 – Smart Share Global Limited, the company behind the ubiquitous "Energy Monster" mobile charging stations across China, has called an extraordinary general meeting for December 31 to seal its fate as a private company. What was initially framed as a straightforward management-led buyout, however, has erupted into a high-stakes corporate drama. A last-minute, superior bid from a major shareholder has turned the upcoming vote from a procedural checkpoint into a contentious battle for control, with the company's future strategy and valuation hanging in the balance.

The planned merger, which would delist Energy Monster from the NASDAQ, is now at a critical juncture, forcing shareholders to choose between a management-backed plan and a significantly richer offer that could reshape the company’s ownership structure.

The Initial Offer: A Play for Value and Flexibility

The journey toward privatization began with a seemingly attractive proposal. A consortium led by key members of Energy Monster's own executive team—including CEO Mars Guangyuan Cai and President Peifeng Xu—alongside private equity firm Trustar Capital, tabled an offer to take the company private. The deal valued the company at approximately US$327 million, offering shareholders US$1.25 in cash for each American Depositary Share (ADS).

On paper, the offer looked compelling. It represented a substantial 74.8% premium over the company's stock price on the day before the initial proposal was received in early January 2025. The company's board, acting on the unanimous recommendation of a special committee of independent directors, approved the agreement. The rationale was clear and aligned with a growing trend among U.S.-listed Chinese firms: escape the perceived undervaluation in public markets.

For years, many Chinese tech companies have argued that overseas investors do not fully appreciate their intrinsic value or growth potential, leading to depressed stock prices and limited liquidity. Going private, the thinking goes, unshackles the company from the relentless pressure of quarterly earnings reports and short-term market sentiment. It provides the operational flexibility needed to invest in long-term strategy, adapt to fierce market competition, and reduce the significant costs associated with public company compliance. For Energy Monster, this meant the freedom to double down on its highly successful, cost-efficient "network partner" model, which already accounts for over 96% of its locations, without public scrutiny of the upfront investment. The management-led consortium, which already controls 64% of the company's voting power, seemed to have a clear path to executing this vision.

A Rival Enters the Fray: Hillhouse Ups the Ante

The carefully laid plans were thrown into disarray on August 15, 2025, when investment giant Hillhouse Investment Management submitted its own unsolicited, non-binding offer. The bid was a bombshell: US$1.77 per ADS, a staggering 40% premium over the management consortium's offer and reportedly above the company's net cash on hand.

This move is highly unusual in the landscape of Chinese take-private deals. Typically, management-led buyouts proceed with little opposition, as the insider group often wields overwhelming voting control, making competing bids futile. Hillhouse, however, is not a minor player. As Energy Monster's second-largest outside shareholder, it holds a 12.3% stake in the company's Class A shares. Its bid isn't just a protest; it's a credible alternative that the board cannot easily dismiss.

The competing offer fundamentally reframes the narrative. It suggests that a sophisticated, major investor believes the management-led consortium is attempting to acquire the company at a significant discount. By putting a much higher number on the table, Hillhouse is forcing a public debate about Energy Monster's true value and challenging the insiders who aim to take full control. The special committee of independent directors is now in the difficult position of having to formally review Hillhouse's offer, which appears to meet the criteria for a "superior proposal" under the terms of the original merger agreement.

A Shareholder Showdown Looms

The emergence of a rival bid transforms the December 31 EGM from a coronation into a potential shareholder rebellion. The original merger agreement contains a critical condition: the deal can be terminated if shareholders representing more than 15% of the outstanding shares formally dissent. With Hillhouse alone holding a 12.3% stake, this threshold is no longer a distant possibility but a very real threat.

The shareholder registry reveals a complex web of interests. Beyond Hillhouse, other significant stakeholders include Alibaba with a 15% stake and Xiaomi-affiliated entities holding another 17%. While the management consortium controls the majority of the voting power through a dual-class share structure, the dissent provision is based on the number of shares, not votes. If Hillhouse formally dissents, it would only need a small fraction of other investors to join them to scuttle the $1.25-per-ADS deal.

This dynamic gives significant leverage to other large shareholders and the broader investor base. They must now weigh the certainty of the management-backed deal against the prospect of a much higher payout from Hillhouse. The situation is further complicated by the fact that the support agreement binding the management consortium to their own deal could potentially be broken if the board deems the Hillhouse offer superior, theoretically allowing them to join the higher bid. The special committee, which includes a representative from Hillhouse who had initially approved the lower-priced deal, faces intense scrutiny as it navigates this conflict and makes a recommendation that will profoundly impact all shareholders.

Beyond the Boardroom: The Future of a Charging Giant

Regardless of which bid prevails, the move to go private signals a strategic pivot for Energy Monster as it navigates the mature, yet still growing, Chinese mobile charging market. As the market leader by revenue in 2020, with nearly 10 million power banks across more than 1.2 million locations, the company operates at a massive scale. The Chinese market, estimated at over US$5.5 billion in 2025, is the world's largest and most advanced, driven by high smartphone penetration and the dominance of power-hungry apps.

However, leadership brings intense competition. New entrants like the tech giant Meituan are aggressively entering the space, while the industry itself is evolving with demands for faster charging, smarter IoT-enabled rental stations, and even nascent mobile charging robot technologies. In this environment, the ability to make bold, long-term strategic investments without worrying about quarterly stock performance is a significant competitive advantage.

Privatization would allow Energy Monster to accelerate innovation and defend its market share more aggressively. It could deepen its network partner strategy, explore new technologies, and expand its footprint without the constraints of public ownership. The current battle for control is ultimately a debate over how to best fund that future and who should reap the rewards. The outcome of the impending shareholder vote will not only determine the company's price but will set its strategic course for years to come in one of China's most dynamic consumer tech sectors.