EV maker Nio gets $2.2 billion investment from CYVN Holdings

Electric vehicle (EV) maker Nio has signed an agreement with Abu Dhabi based CYVN Holdings for an investment of $2.2 billion.

The investment amount in cash to subscribe for 294,000,000 newly issued Class A ordinary shares of Nio at a per share purchase price of $7.50 as of December.

In July this year, Nio received a $738 million startegic equity investment from CYVN and acquired certain Class A ordinary shares of the company from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of $350 million.

After this transaction, CYVN will beneficially own about 20.1% of the company’s total issued and outstanding shares. Meanwhile, the transaction deal is decided to conclude in the final week of this month.

Following this investment deal, CYVN is entitled to nominate two directors to Nio’s board of directors as long as it holds no less than 15% of the outstanding share capital.

If the share goes down to 15% and remains above 5%, CYVN will be entitled to hold one director on the board of directors.

(source – Nio)