NIO secures strategic investment from Abu Dhabi Government-backed CYVN Holdings.
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NIO secures strategic investment from Abu Dhabi Government-backed CYVN Holdings.

CYVN Holdings invest a substantial sum of US$738.5 million in cash to subscribe to 84,695,543 newly issued Class A ordinary shares of NIO.

NIO announced that it has entered into a share subscription agreement with CYVN Holdings L.L.C., an investment vehicle majority owned by the Abu Dhabi Government, known for its focus on advanced and smart mobility solutions. The agreement marks a significant milestone for NIO and underlines the growing interest in the company’s vision for the future of electric vehicles.

According to the agreement, CYVN Holdings will invest a substantial sum of US$738.5 million in cash to subscribe to 84,695,543 newly issued Class A ordinary shares of NIO. The per-share purchase price of US$8.72 was determined based on the volume-weighted average price of Class A ordinary shares on the New York Stock Exchange over the seven consecutive trading days leading up to June 19, 2023. The investment transaction is expected to close in early July 2023, subject to customary closing conditions.

NIO’s decision to seek investment from CYVN Holdings demonstrates the company’s commitment to expanding its global footprint and pursuing its international business objectives. By joining forces with CYVN Holdings, NIO aims to leverage the expertise and resources of the Abu Dhabi Government, which has consistently shown a strong focus on promoting advanced and smart mobility solutions.

The share issuance is being conducted as a private placement under Regulation S of the Securities Act of 1933, exempting it from registration requirements. As part of the agreement, the Investor has agreed not to sell, transfer, or dispose of any shares acquired in the investment transaction for a period of six months after the closing.

Furthermore, the Investor has also entered into a share purchase agreement with an affiliate of Tencent, one of China’s leading technology conglomerates. This agreement involves the purchase of 40,137,614 Class A ordinary shares of NIO from the Existing Shareholder in a secondary share transfer. Following the closing of both the investment transaction and the secondary share transfer, the Investor will hold approximately 7.0% of NIO’s total issued and outstanding shares.

The significance of this partnership extends beyond the financial investment. Upon or after the closing of the investment transaction, the Investor will have the right to nominate one director to NIO’s board of directors, provided it continues to beneficially own no less than 5% of the company’s outstanding share capital. The appointment will adhere to applicable laws, regulations, listing rules, and the company’s articles of association.

It is noteworthy that NIO and the Investor have also expressed their intention to collaborate in pursuing international business opportunities following the completion of the investment transaction. This collaboration is expected to unlock synergies and accelerate NIO’s expansion into global markets, thereby solidifying the company’s position as a major player in the smart electric vehicle industry.

“The strategic investments from CYVN Holdings demonstrate NIO’s unique values in the smart electric vehicle industry. The Investment Transaction will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness,” said William Bin Li, founder, chairman and chief executive officer of NIO. “In addition, we are excited about the prospect of partnering with CYVN Holdings to expand our international business. With the vision of Blue Sky Coming, we will continue to strive for technological breakthroughs and user experiences beyond expectations, contributing to a more sustainable future for the globe.”

“Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market,” said Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings. “We are excited to develop strategic partnerships with NIO, and are fully committed to providing strategic value that will support NIO’s international business growth. We will join hands with NIO to drive the global energy transition and sustainable growth for the whole humanity.”

Also Read: Polestar forms joint venture with Xingji Meizu to strengthen position in Chinese EV market.

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