NIO Secures $738.5 Million Investment from Abu Dhabi Government-Owned CYVN Holdings

The investment from Abu Dhabi-backed CYVN Holdings will help NIO to fuel business growth and expand international ventures

By Carandbike Team

1 mins read

Published on June 22, 2023

Highlights

NIO secures a $738.5 million investment from CYVN Holdings, majority-owned by the Abu Dhabi Government
The investment allows CYVN Holdings to acquire approximately 7.0% of NIO's shares and grants them the right to nominate a director to NIO's board
The CYVN will also have the right to nominate one director to NIO's board of directors

China-headquartered electric vehicle (EV) manufacturer NIO Inc. has announced that it has entered into a share subscription agreement with CYVN Holdings L.L.C., an investment firm majority owned by the Abu Dhabi Government. Under the agreement, CYVN will invest a total of $738.5 million by subscribing to 84,695,543 newly issued Class A ordinary shares of NIO. The per-share purchase price is set at $8.72.

As part of the agreement, the investor has committed to refrain from selling, transferring, or disposing of any shares acquired in the investment transaction for a period of six months following the closing.

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Simultaneously, NIO is aware that the investor has entered into a share purchase agreement with a Tencent affiliate. Upon the completion of both the investment transaction and the secondary share transfer, the investor will possess approximately 7.0 per cent of the total issued and outstanding shares of NIO.

As a result of the investment, CYVN Holdings will have the right to nominate one director to NIO's board, provided its beneficial ownership remains at no less than 5 per cent of the company's outstanding share capital.

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Furthermore, NIO and the investor have committed to collaborating on ventures in NIO's international business endeavors following the closing of the investment deal.

William Bin Li, founder, chairman and chief executive officer of NIO 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.”

Commenting on the investment Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings 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.”

Written by: - RONIT AGARWAL

Last Updated on June 22, 2023