Nio earns $738M investment from CYVN Holdings

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Nio earns $738M investment from CYVN Holdings

Chinese electric automaker, NIO Inc. (NYSE: NIO ) announced Tuesday that the company has entered into a share subscription agreement with CYVN Holdings, an investment firm, majority owned by the Abu Dhabi Government, with a focus on advanced and smart mobility.

According to the agreement, CYVN will invest $738.5 million in cash to subscribe to 84,695,543 newly issued Class A ordinary shares of the Company at a per-share purchase price of $8.72. The transaction is expected to close in early July 2023.

In addition, NIO and CYVN agreed to cooperate 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. 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.”

Shares of NIO are down 1.17% in early trading on Tuesday.

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