Technology

Chinese EV maker Nio gets US$2.2 billion investment from Abu Dhabi fund

0
Please log in or register to do it.
Chinese EV maker Nio gets US.2 billion investment from Abu Dhabi fund


CYVN Holdings, an investment fund controlled by the Abu Dhabi Investment Authority (ADIA), has invested US$2.2 billion in Nio, making it the first Middle East investor to take a substantial stake in a Chinese electric-car maker.
Nio, one of China’s top three builders of premium electric vehicles (EVs), announced on Monday it had entered a share subscription agreement with CYVN Holdings, through its affiliate CYVN Investments RSC (CYVN).

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.

The deal raises CYVN’s stake in Nio to 20.1 per cent, and makes it the first Middle East investor to hold a sizeable stake in one of China’s fastest-growing EV makers.

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.

03:06

China’s public transport goes green as electric buses hit the streets

China’s public transport goes green as electric buses hit the streets

“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.”

Major EV makers are under pressure to stay ahead of the game amid an increasingly competitive market in mainland China. Crowded with 200 players, concerns about severe overcapacity are mounting.
Nio has yet to make a profit since it was established in 2014, but the carmaker, along with Xpeng and Li Auto – the three Chinese premium EV assemblers – have new rivals on the block, including smartphone vendor Xiaomi and search-engine giant Baidu.
In November, Nio’s vice-president of manufacturing, logistics and operations, said the company is aiming to reduce its workforce by a third by 2027 as it rapidly replaces them with robots in order to improve efficiency and cut costs.



Source link

Trump dominates GOP primary as he reaches 70% support, conservatives pleased 
Hong Ling Teared Up As She Walked Down The Aisle With Her Parents Towards Husband Nick Teo