Chinese electric car company NIO announced Tuesday it received $738.5 million in new capital from CYVN Holdings, a fund owned by the Abu Dhabi government.
The deal was priced at $8.72 a share. The strategic investment ultimately gives the fund, CYVN Holdings, a 7% stake in Nio.
NIO expects the deal with the Abu Dhabi fund to close in early July. The agreement also gives CYVN the right to nominate a director to NIO’s board.
In addition, NIO and the Investor agreed to cooperate to jointly pursue opportunities in NIO’s international business following the closing of the Investment Transaction.
“The strategic investments from CYVN Holdings demonstrate NIO’s unique values in the smart electric vehicle industry. The Investment Transaction will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness,” said William Bin Li, founder, chairman and chief executive officer of NIO. “In addition, we are excited about the prospect of partnering with CYVN Holdings to expand our international business. With the vision of Blue Sky Coming, we will continue to strive for technological breakthroughs and user experiences beyond expectations, contributing to a more sustainable future for the globe.”
“Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market,” said Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings. “We are excited to develop strategic partnerships with NIO, and are fully committed to providing strategic value that will support NIO’s international business growth. We will join hands with NIO to drive the global energy transition and sustainable growth for the whole humanity.”
