NIO announces completion of strategic equity investment from CYVN

Shanghai (Gasgoo)- NIO, the Chinese electric vehicle manufacturer, on July 13 announced the successful completion of the previously disclosed strategic investment of $738.5 million from CYVN Investments RSC Ltd., an affiliate of CYVN Holdings L.L.C., an investment vehicle majority owned by the Abu Dhabi Government with a strategic focus on advanced and smart mobility (collectively referred to as “CYVN Entities”).

According to publicly disclosed information, CYVN Entities has also acquired a number of Class A ordinary shares of NIO from a subsidiary of Tencent, for a total consideration of $350 million ("secondary share transfer"). Following the investment transaction and the secondary share transfer, CYVN Investments RSC Ltd. now holds approximately 7.0% of the total issued and outstanding shares of NIO.

NIO's delivery center in Nanxiang district; photo credit: NIO

Regarding NIO's investment from Abu Dhabi, the news was actually announced on June 20. On that day, NIO and CYVN Holdings signed a subscription agreement, through which CYVN would make a strategic investment of approximately $1.1 billion in NIO via private placements and secondary share transfers, while also engaging in strategic cooperation in NIO's international business.

As per one of the agreements, CYVN will invest roughly $738.5 million to subscribe for nearly 85 million newly issued Class A ordinary shares of NIO at a price of $8.72 per share. Additionally, CYVN has also reached an agreement with a Tencent-affiliated company (an existing shareholder of NIO) to acquire the stake the latter held in NIO.

NIO's founder, CEO, and chairman, William Li, stated, "CYVN's investment in NIO reflects the unique value of NIO in the global smart electric vehicle industry and will provide sustained momentum for NIO’s long-term development."

Recent data shows that with the launch of new products such as the ET5T and the all-new ES8, NIO delivered 10,707 vehicles in June. In the first half of this year, NIO's cumulative deliveries reached 54,561 units, representing a year-on-year growth of 7.3%.