NIO Inc. NIO on Wednesday closed the $2.2 billion strategic equity investment from CYVN Investments RSC, an investment vehicle based in Abu Dhabi.
On December 18, NIO inked the subscription agreement with CYVN Holdings, pursuant to which CYVN Investments subscribed to 294 million newly issued Class A ordinary shares of the company at a per share purchase price of $7.50
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In July, CYVN made a $738.5 million strategic equity investment in the company and acquired specific Class A ordinary shares of the company from an affiliate of Tencent Holding Ltd. TCEHY for an aggregate consideration of $350 million. Both transactions were closed in July 2023.
With the successful conclusion of the strategic equity investment amounting to $2.2 billion, CYVN now holds an approximate 20.1% ownership stake in the company, encompassing all issued and outstanding shares.
As announced earlier, CYVN will also 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.
“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,” said William Bin Li, founder, chairman and chief executive officer of NIO, in the December 18 statement.
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Price Action: NIO shares are trading lower by 0.54% to $9.290 premarket on the last check Wednesday.
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Image and article originally from www.benzinga.com. Read the original article here.