NIO - NIO Inc. Announces US$2.2 Billion Strategic Equity Investment from CYVN | Benzinga
SHANGHAI, China, Dec. 18, 2023 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE:NIO, HKEX: 9866, SGX: NIO)) ("NIO" or the "Company"), a pioneer and a leading company in the premium smart electric vehicle market, today announced that it has entered into a share subscription agreement with CYVN Holdings L.L.C ("CYVN Holdings"), through its affiliate CYVN Investments RSC Ltd (the "Investor" or "CYVN"), an investment vehicle based in Abu Dhabi, pursuant to which CYVN will invest an aggregate of US$2.2 billion in cash to subscribe for 294,000,000 newly issued Class A ordinary shares of the Company at a per share purchase price of US$7.50 (the "December Investment Transaction").
As previously announced, in July 2023 the Company received a US$738.5 million strategic equity investment from CYVN. Additionally, CYVN acquired certain Class A ordinary shares of the Company from an affiliate of Tencent Holdings Ltd. for an aggregate consideration of US$350 million. Following the completion of the December Investment Transaction, CYVN will beneficially own approximately 20.1% of the Company's total issued and outstanding shares.
The December Investment Transaction is subject to customary closing conditions and the closing is expected to take place in the final week of December. The share issuance is conducted as a private placement in reliance on Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), to be exempt from registration. The Investor and the Company are both subject to certain lock-up arrangements for a period of six (6) months following closing of the December Investment Transaction.
Upon closing of the December Investment Transaction, CYVN will be entitled to nominate two directors to the Company's board of directors so long as it continues to beneficially own no less than 15% of the Company's outstanding share capital. If CYVN beneficially owns less than 15% but more than 5% of the Company's outstanding share capital, it will be entitled to nominate one director to the Company's board of directors. Such appointment will be subject to the requirements of applicable laws, regulations, listing rules and the Company's articles of association.
NIO and CYVN, and their affiliates, will continue to work jointly to pursue strategic and technology collaborations in international markets following the closing of the December Investment Transaction.
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