Nio receives major investment from CYVN Holdings
The latest deal, which is expected to be completed in the last week of December, will see CYVN own a total of 419 million, or around 20.1 per cent, of Nio shares. As part of the latest deal, the investment firm secured 294 newly issued ordinary shares of Nio, which equates to a purchase price of USD 7.50 per share. In addition, CYVN will have the right to appoint two directors to Nio’s board of directors.
The investment company, which is majority-owned by the government of Abu Dhabi, will thus become the largest single shareholder in the electric car manufacturer. However, founder and CEO William Li will retain most of the voting rights.
CYVN had already invested almost 1.1 billion US dollars in Nio in July 2023. At that time, the company received 84.7 million newly issued ordinary shares at a price of USD 8.72 per share and acquired around 40.1 million Nio shares worth approximately USD 350 million from a subsidiary of Tencent, an existing Nio shareholder. Since then, CYVN has held around seven per cent of the Chinese car manufacturer.
“Our increased investment in NIO represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space,” says Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings. “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.”
“NIO and CYVN, and their affiliates, will continue to work jointly to pursue strategic and technology collaborations in international markets following the closing of the December Investment Transaction,” the Nio press release states. The exact nature of these co-operations is not specified.
Nio founder and CEO William Bin Li added: “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.”
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