Chinese car manufacturer Nio will receive a capital injection of $738.5 million through an investment vehicle majority owned by the Abu Dhabi Government.
The deal will see CYVN Holdings purchase 84,695,543 newly issued Class A ordinary shares in Nio at a per-share purchase price of $8.72. The closing is expected to take place in early July and the Abu Dhabi Government has agreed not to sell, transfer or dispose of any shares acquired for six months.
“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,” chairman and managing director of CYVN Holdings Jassem Al Zaabi said. “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.”
Nio notes that CYVN Holdings has also entered into a share purchase agreement with an affiliate of Tencent to purchase an additional 40,137,614 Class A ordinary shares of the electric car manufacturer. Once the deals are done, CYVN Holdings will own an approximate 7.0% stake in Nio.
Read: New Nio EL6 Electric SUV Comes To Europe With 438HP And Swappable Batteries
After the investment, CYVN Holdings will also be entitled to nominate one director to the company’s board of directors. The Abu Dhabi Government has also agreed to “jointly pursue opportunities in Nio’s international business.”
“The strategic investments from CYVN Holdings demonstrate NIO’s unique values in the smart electric vehicle industry,” Nio chairman and chief executive William Bin Li said. “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. 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.”
