NIO Gets $740 Million Investment from Abu Dhabi’s CYVN Holdings
NIO announced on June 20, 2023, that it has secured a significant equity investment from CYVN Holdings L.L.C., an investment firm majorly owned by the Abu Dhabi Government and focused on advanced and smart mobility.
Under the terms of the share subscription agreement, CYVN Holdings will invest a total of $738.5 million in cash, subscribing to 84,695,543 newly issued Class A ordinary shares of NIO at a per share purchase price of $8.72. This price reflects 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, which is subject to customary closing conditions, is expected to close in early July 2023. The shares will be issued as a private placement under Regulation S of the Securities Act of 1933, exempting it from registration. CYVN Holdings has agreed to a six-month lock-up period following the closing of the transaction.
“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.”
In a parallel development, CYVN Holdings has also agreed to purchase 40,137,614 Class A ordinary shares from an affiliate of Tencent. Upon completion of both transactions, CYVN Holdings will beneficially own approximately 7.0% of NIO’s total issued and outstanding shares.
As part of the agreement, CYVN Holdings will have the right to nominate one director to NIO’s board, provided it continues to beneficially own at least 5% of NIO’s outstanding share capital. This appointment will be subject to applicable laws, regulations, listing rules, and the company’s articles of association.
Moreover, NIO and CYVN Holdings have agreed to jointly explore opportunities in NIO’s international business following the closing of the investment transaction.
“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, in a statement. “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.”