Abu Dhabi-Backed CYVN Holdings Invests $2.2 Billion in China Electric Vehicle Company Nio in 294 Million Newly Issued Shares at $7.50 Per Share, CYVN Total Shareholding Increases to 20.1%, CYVN Had Invested $738.5 Million in Nio in July 2023 & Acquired $350 Million of Shares from Tencent Affiliate
22nd December 2023 | Hong Kong
Abu Dhabi-backed CYVN Holdings has announced the strategic investment of $2.2 billion in China electric vehicle company Nio in 294 million newly issued shares at $7.50 per share, with CYVN total shareholding increasing to 20.1%. Earlier in 2023, CYVN had invested $738.5 million in Nio in July 2023 and acquired $350 million of shares from a Tencent affiliate. Nio has a current market capitalization of $13.8 billion (21/12/23). CYVN Holdings is a specialist investment vehicle based in Abu Dhabi, that deploys capital in smart and advanced mobility solutions. It aims to create a smart mobility platform by investing in and partnering with industry leaders around the world. NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market, founded in November 2014. In 2022, Nio had been targeted by a United States short-seller report for overstating revenue & profits, with Nio responding to the Grizzly Research for their inaccurate reporting. More info below:
“ Abu Dhabi-Backed CYVN Holdings Invests $2.2 Billion in China Electric Vehicle Company Nio in 294 Million Newly Issued Shares at $7.50 Per Share, CYVN Total Shareholding Increases to 20.1%, CYVN Had Invested $738.5 Million in Nio in July 2023 & Acquired $350 Million of Shares from Tencent Affiliate “
William Bin Li, founder, chairman and chief executive officer of NIO: “We are deeply inspired by CYVN’s vision to accelerate the global transition to a more sustainable future, and we appreciate its endorsement of NIO’s unique values. 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. We are confident that NIO will further solidify its leading position in the transformation of the automotive industry.”
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings: “Our increased investment in NIO represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space. 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.”
Abu Dhabi-Backed CYVN Holdings Invests $2.2 Billion in China Electric Vehicle Company Nio in 294 Million Newly Issued Shares at $7.50 Per Share, CYVN Total Shareholding Increases to 20.1%, CYVN Had Invested $738.5 Million in Nio in July 2023 & Acquired $350 Million of Shares from Tencent Affiliate
18th December 2023 – NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the premium smart electric vehicle market, today announced that it has entered into a share subscription agreement with CYVN Holdings L.L.C (“CYVN Holdings”), through its affiliate CYVN Investments RSC Ltd (the “Investor” or “CYVN”), an investment vehicle based in Abu Dhabi, pursuant to which CYVN will invest an aggregate of US$2.2 billion in cash to subscribe for 294,000,000 newly issued Class A ordinary shares of the Company at a per share purchase price of US$7.50 (the “December Investment Transaction”).
- As previously announced, in July 2023 the Company received a US$738.5 million strategic equity investment from CYVN. Additionally, CYVN acquired certain Class A ordinary shares of the Company from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of US$350 million. Following the completion of the December Investment Transaction, CYVN will beneficially own approximately 20.1% of the Company’s total issued and outstanding shares.
- The December Investment Transaction is subject to customary closing conditions and the closing is expected to take place in the final week of December. The share issuance is conducted as a private placement in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), to be exempt from registration. The Investor and the Company are both subject to certain lock-up arrangements for a period of six (6) months following closing of the December Investment Transaction.
- Upon closing of the December Investment Transaction, CYVN will be entitled to nominate two directors to the Company’s board of directors so long as it continues to beneficially own no less than 15% of the Company’s outstanding share capital. If CYVN beneficially owns less than 15% but more than 5% of the Company’s outstanding share capital, it will be entitled to nominate one director to the Company’s board of directors. Such appointment will be subject to the requirements of applicable laws, regulations, listing rules and the Company’s articles of association.
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.
About NIO
NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users. NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. NIO differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS. NIO’s product portfolio consists of the ES8, a six-seater smart electric flagship SUV, the ES7 (or the EL7), a mid-large five-seater smart electric SUV, the ES6 (or the EL6), a five-seater all-round smart electric SUV, the EC7, a five-seater smart electric flagship coupe SUV, the EC6, a five-seater smart electric coupe SUV, the ET7, a smart electric flagship sedan, the ET5, a mid-size smart electric sedan, and the ET5T, a smart electric tourer.
About CYVN Holdings
CYVN Holdings is a specialist investment vehicle based in Abu Dhabi, that deploys capital in smart and advanced mobility solutions. It aims to create a smart mobility platform by investing in and partnering with industry leaders around the world.
China Electric Car Maker Nio Targeted by United States Short-Seller Report for Overstating Revenue & Profits, Nio Responds to Grizzly Research
1st July 2022 – China electric car-maker Nio had been targeted by a United States short-seller report for overstating revenue & profits, with Nio responding to the Grizzly Research for their inaccurate reporting. Grizzly Research: “We Believe NIO Plays Valeant-esque Accounting Games to Inflate Revenue and Boost Net Income Margins to Meet Targets.” Nio: “The report is without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations regarding information relating to the Company. The Company’s board of directors, including the audit committee, is reviewing the allegations and considering the appropriate course of action to protect the interests of all shareholders. The Company will make additional disclosures in due course consistent with the requirements of applicable rules and regulations of the Securities and Exchange Commission, the New York Stock Exchange, The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The Company emphasizes its continued and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure in compliance with applicable rules and regulations.”
About NIO Inc.
NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users. NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. NIO differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS. NIO launched the ES8, a seven-seater flagship premium smart electric SUV in December 2017, and began deliveries of the ES8 in June 2018 and its variant, the six-seater ES8, in March 2019. NIO launched the ES6, a five-seater high-performance premium smart electric SUV, in December 2018, and began deliveries of the ES6 in June 2019. NIO launched the EC6, a five-seater premium smart electric coupe SUV, in December 2019, and began deliveries of the EC6 in September 2020. NIO launched the ET7, a flagship premium smart electric sedan, in January 2021, and began deliveries of the ET7 in March 2022. NIO launched the ET5, a mid-size premium smart electric sedan, in December 2021. NIO launched the ES7, a mid-large five-seater premium smart electric SUV, in June 2022.
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