CYVN will subscribe to 294,000,000 newly issued shares of Nio at a price of US$7.50 each. The deal is expected to be closed in the final week of December, the company said in a press release.
CYVN will be entitled to nominate two directors to Nio’s board as long as it maintains ownership of no less than 15 per cent of the carmaker’s outstanding share capital, according to the announcement.
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“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,” said William Bin Li, founder, chairman and chief executive officer of Nio, in a press release.
“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.”
“We are confident that Nio will further solidify its leading position in the transformation of the automotive industry.”
CYVN Holdings is a specialist investment vehicle based in Abu Dhabi, that deploys capital in advanced mobility solutions, according to its company website.
“Our increased investment in Nio represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space,” said Jassem Al Zaabi, chairman and managing director of CYVN Holdings.
“This transaction demonstrates our confidence in Nio’s unique positioning and competitiveness in the global smart EV industry.”