(RTTNews) – NIO Inc. (NIO) has entered into a share subscription agreement with CYVN Holdings, an investment vehicle majority owned by the Abu Dhabi Government strategically focused on advanced and smart mobility, pursuant to which CYVN will invest an aggregate of $738.5 million in cash to subscribe 84,695,543 newly issued class A ordinary shares of the company at a per share purchase price of $8.72. The closing of the transaction is expected to take place in early July 2023.
Also, CYVN has entered into a share purchase agreement with an affiliate of Tencent pursuant to which CYVN will purchase 40,137,614 class A ordinary shares of NIO beneficially owned by Tencent.
Upon the closing of the investment transaction and secondary share transfer, CYVN Holdings will beneficially own approximately 7.0% of NIO Inc.’s total issued and outstanding shares. The investor will be entitled to nominate one director to the company’s board.
NIO and CYVN agreed to cooperate to jointly pursue opportunities in NIO’s international business following the closing of the investment.