Chinese electric vehicle manufacturer Nio Inc – ADR NIO said in a Form 6-K filing that it has agreed to redeem an 8.6% equity stake in Nio China for consideration of 511.5 million yuan ($72.5 million).
What Happened: Under amended and supplemented agreements with strategic investors, Nio and its designated parties have the right to buy back 50% of the equity interest in Nio China held by Jianheng New Energy Fund, one of the strategic investors, the company said in the filing.
When the EV maker raised roughly $1.7 billion in gross proceeds from a 75-million-share equity offering in late August, it said it intends to use part of the proceeds to repurchase equity interest held by certain minority shareholders of Nio China.
Following the redemption, Nio said it will hold an 84.5% controlling stake in Nio China.
Nio EC6 Deliveries To Begin Soon? Nio has started shipping its third mass-produced EV model, the EC6, and customers will soon receive deliveries, cnTechPost reported, citing the company.
The EC6 is an electric SUV that competes against Tesla Inc's TSLA Model Y.
NIO Price Action: Nio shares were trading slightly positive at $19.32 at last check Friday.
Related Links:
Why Nio Has A Shot At Becoming The 'Tesla Of China'
China's Nio Unveils Battery-As-A-Service, Lowering EV Ownership Costs
Photo courtesy of Nio.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
