Chinese electric vehicle maker NIO signed a share subscription agreement with CYVN Holdings, an Abu Dhabi government fund, which will invest a total of about $1.1 billion in Nio through an additional new share issue and share transfer of an existing shareholder, according to an announcement on Tuesday.
CYVN Holdings is an Abu Dhabi government majority-owned investment vehicle focused on strategic investment in the advanced, smart mobility sector and is committed to partnering with global industry leaders in this area.
The investor will subscribe for a total of $738.5 million in cash for 84,695,543 shares of NIO’s newly issued Class A ordinary shares at a purchase price of $8.72 per share. The transaction price is the volume-weighted average price of NIO’s Class A ordinary shares on the New York Stock Exchange over the seven consecutive trading days immediately preceding June 19.
The transaction is subject to customary closing conditions and is expected to close in early July.
CYVN Holdings has agreed not to sell, transfer or dispose of any shares acquired in the investment transaction for six months after closing, according to the announcement.
In addition, CYVN Holdings has entered into a share purchase agreement with an affiliate of Tencent, an existing shareholder of NIO, to purchase 40,137,614 shares of NIO’s Class A ordinary shares.
If calculated with the price of $8.72 per share, the transaction value of the secondary share transfer would be about $350 million and that will bring the total investment of CYVN Holdings in NIO to $1.089 billion.
Upon completion of the investment transaction and the secondary share transfer, CYVN Holdings will own about 7.0 percent of the total issued and outstanding shares of NIO.