Abu Dhabi Government Makes Strategic Equity Investment In NIO - What's On The Cards?

NIO Inc. NIO has entered into a share subscription agreement with CYVN Holdings LLC, according to which the Investor will invest an aggregate of $738.5 million in cash to subscribe 84.7 million newly issued Class A ordinary shares at a per share purchase price of $8.72.

CYVN is an investment vehicle majority owned by the Abu Dhabi Government strategically focused on advanced and smart mobility.

The Investment Transaction is expected to take place in early July 2023. 

Concurrently, NIO is aware that the Investor has entered into a share purchase agreement to purchase 40.14 million Class A ordinary shares beneficially owned by Tencent Holdings ADR TCEHY. 

NIO and the Investor agreed to cooperate to jointly pursue opportunities in NIO's international business following the closing.

Upon the closing of the transactions, the Investor will beneficially own approximately 7.0% of the company's total issued and outstanding shares and will be entitled to nominate one director to the board.

In addition, the parties agreed to cooperate to jointly pursue opportunities in NIO's international business.

Price Action: NIO shares are trading lower by 0.74% at $9.33 on the last check Tuesday.

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