Dec. 18, 2023 (GLOBE NEWSWIRE) — SHANGHAI, China In the premium smart electric vehicle market, NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) is a leader and innovator. Today, it 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 Abu Dhabi-based investment vehicle. Under the terms of the agreement, CYVN will invest a total of US$2.2 billion in cash to subscribe for 294,000,000 newly issued Class A ordinary shares of the Company, with a purchase price of US$7.50 per share (the “December Investment Transaction”).
As previously disclosed, CYVN provided the Company with a strategic equity investment of US$738.5 million in July 2023. Furthermore, for a total payment of US$350 million, CYVN purchased certain Class A ordinary shares of the company from a Tencent Holdings Ltd. subsidiary. After the December Investment Transaction closes, CYVN will hold around 20.1% of all issued and outstanding shares of the company beneficially.
The conclusion of the December Investment Transaction is anticipated to occur in the last week of December, subject to normal closing requirements. In order to avoid registration requirements, the share issue is carried out as a private placement in accordance with Regulation S of the Securities Act of 1933, as amended (the “Securities Act”). After the December Investment Transaction closes, the Investor and the Company are both subject to certain lock-up agreements for a period of six (6) months.
As long as it keeps its beneficial ownership of at least 15% of the company’s outstanding share capital, CYVN will be able to propose two directors to the board of directors following the closure of the December Investment Transaction. CYVN is eligible to propose one director to the company’s board of directors if it beneficially holds more than 5% but less than 15% of the outstanding share capital. The terms of the company’s articles of organisation, listing rules, and any applicable laws, regulations, and restrictions will all apply to this appointment.
After the December Investment Transaction closes, NIO, CYVN, and their affiliates will keep working together to explore technology and strategic partnerships in foreign markets.
“We cherish CYVN’s support of NIO’s distinctive ideals and are greatly impressed by its aim to expedite the worldwide transition to a more sustainable future. William Bin Li, the company’s founder, chairman, and chief executive officer, stated, “With the strengthened balance sheet, NIO is well-positioned to sharpen brand positioning, bolster sales and service capabilities, and make long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities.” “We have no doubts that NIO will maintain its dominant position in the automotive industry’s transformation.”
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings, stated, “Our increased investment in NIO represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space.” “This deal shows how confident we are in NIO’s distinct positioning and ability to compete in the global smart EV market. We are thrilled to support NIO’s efforts in product innovation, technical advancements, and global market expansion as a long-term strategic partner.
Leading the way in the premium smart electric car industry is NIO Inc. NIO was established in November 2014, and its goal is to create happy lives. Beginning with smart electric cars, NIO wants to create a community where users may grow and enjoy each other’s company. NIO is a leading innovator in next-generation technologies, including digital technology, electric powertrains, batteries, and autonomous driving. It designs, develops, co-manufactures, and markets luxury smart electric cars. NIO sets itself apart with its constant technical advancements and innovations, which include its unique autonomous driving technologies and Autonomous Driving as a Service (ADaaS) as well as its industry-leading battery swapping technologies, Battery as a Service (BaaS).
The six-seater smart electric flagship SUV from NIO, the ES7 (or EL7), the ES6 (or EL6), the five-seater all-around smart electric SUV, the EC7, the five-seater smart electric flagship coupe SUV, the EC6, the five-seater smart electric coupe SUV, the ET7, the smart electric flagship sedan, the ET5, the mid-size smart electric sedan, and the ET5T, the smart electric tourer, make up the company’s product lineup.
Statements in this news release may be considered “forward-looking” statements under the terms of the U.S. Private Securities Litigation Reform Act of 1995’s “safe harbour” provisions. Terms like “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar expressions can be used to identify these forward-looking statements. In addition, NIO may include forward-looking statements in written or spoken form in its annual report to shareholders, in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases, other written materials, announcements, circulars, or other publications posted on the websites of The Stock Exchange of Hong Kong Limited (the “SEHK”) and The Singapore Exchange Securities Trading Limited (the “SGX-ST”), and in its annual report to shareholders.
directors or staff to external parties. Forward-looking statements are those that are not historical facts, such as those on NIO’s intentions, goals, and views. There are risks and uncertainties associated with making forward-looking statements. Actual outcomes might differ significantly from any forward-looking statement for a variety of reasons, including but not limited to the following: NIO’s plans; its potential for future growth in business, finances, and operational outcomes; its capacity to design and produce a car that meets consumer standards and is both timely and widely available;
the feasibility, growth potential, and prospects of the recently introduced BaaS and ADaaS; the ability of NIO to secure sufficient reservations and sales of its vehicles; the ability to secure raw materials or other components used in its vehicles; the ability to secure sufficient supply of these materials; the ability to ensure and expand manufacturing capacities, including the establishment and maintenance of partnerships with third parties; the ability to provide convenient and comprehensive power solutions to its customers; the ability to improve or develop alternative technologies in meeting evolving market demand and industry development;