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The Abu Dhabi-based investment company CYVN Holdings has entered a share subscription agreement with Chinese electric vehicle (EV) maker Nio, with an aggregate investment of $2.2 billion.
The news, announced by the Chinese carmaker on its website, follows on from a previously announced equity investment from CYVN, totalling $738.5 million in July. Additionally, CYVN acquired certain Class A ordinary shares of Nio from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of $350 million.
Following the completion of the December investment transaction, CYVN will beneficially own approximately 20.1% of Nio’s total issued and outstanding shares, a statement read.
CYVN, which will subscribe to 294,000,000 newly issued Class A ordinary shares priced at $7.50 each, will also be entitled to nominate two directors to Nio’s board, the statement added.
The closing is expected to take place in the final week of December, with the statement adding that both companies ‘will continue to work jointly to pursue strategic and technology collaborations in international markets’.
“Our increased investment in NIO represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space,” Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings, said.
The investment news comes days after Nio CEO William Li told a media event that the company was looking to establish itself in key markets, including the UAE and Europe, with future plans also targeting the US.
(Writing by Bindu Rai, editing by Brinda Darasha)
