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Chinese EV maker Nio gets US$2.2 billion investment from Abu Dhabi fund
- CYVN Holdings becomes the first Middle East investor to hold a substantial stake in a Chinese electric-car maker
- CYVN will subscribe to 294 million newly issued shares of Nio at a price of US$7.50 each, raising its stake to 20.1%
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CYVN Holdings, an investment fund controlled by the Abu Dhabi government, 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.
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The deal comes a few months after CYVN put US$738.5 million into Nio via a strategic equity investment.
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