Nio Inc NIO NIO has announced that it has entered into a share subscription agreement with CYVN Holdings, which will invest an aggregate of US$2.2 billion ($2.9 billion) in cash to subscribe for 294 million newly issued Class A ordinary shares at a purchase price of US$7.50 each.
CYVN Holdings is a specialist investment vehicle based in Abu Dhabi that deploys capital in smart and advanced mobility solutions. The investment will be made through CYVN’s affiliate CYVN Investments RSC, a separate investment vehicle also based in Abu Dhabi.
Following the completion of the transaction, expected to take place in the final week of December, CYVN will beneficially own approximately 20.1% of Nio’s total issued and outstanding shares.
With its stake in Nio standing above 15%, CYVN will be entitled to nominate two directors to the company’s board of directors.
Nio’s CEO William Li says: “With the enhanced balance sheet, Nio is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities,” said.
Li adds that he is confident Nio will “further solidify” its leading position in the transformation of the automotive industry.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
Meanwhile, Jassem Al Zaabi, managing director of CYVN Holdings says the increased investment in Nio represents a continuation of CYVN’s ongoing strategy to build a leading global portfolio in the mobility space. “This transaction demonstrates our confidence in Nio’s unique positioning and competitiveness in the global smart EV industry. We are excited to be a long-term strategic partner of Nio and support its efforts in product innovation, technological breakthroughs and international market expansion.”
Shares in Nio closed 4 US cents higher or 0.51% up at US$7.92 on Dec 18.
