Nio Secures $2.2 Billion Investment from CYVN, Strengthens Collaboration for Global Expansion.
Nio (NYSE: NIO) has successfully concluded a new round of funding, receiving a strategic equity investment of $2.2 billion from Abu Dhabi government fund CYVN Investments RSC Ltd. The Chinese electric vehicle (EV) manufacturer announced the closure of the deal, solidifying a continued partnership with CYVN and its subsidiaries.
This investment marks the culmination of a series of transactions initiated in July, when CYVN made a strategic equity investment of $738.5 million in Nio. Concurrently, CYVN acquired a portion of Nio’s class A ordinary shares from a Tencent affiliate for $350 million. With the latest $2.2 billion investment, CYVN now holds approximately 20.1 percent of Nio’s total issued and outstanding shares.
Nio and CYVN, along with their respective subsidiaries, are committed to fostering strategic and technical collaborations in international markets. The synergy between the two entities extends beyond financial support, positioning them as partners in the pursuit of shared goals.
On December 18, Nio formalized a share subscription agreement with CYVN Holdings LLC, leading to the investment of $2.2 billion in cash. CYVN Investments RSC Ltd, a CYVN affiliate, subscribed for 294 million newly issued shares of Nio’s class A ordinary shares at $7.50 per share. With the completion of this transaction, CYVN becomes Nio’s largest shareholder, holding class A ordinary shares with equal voting rights.
Although CYVN assumes the role of the largest institutional shareholder, Nio’s founder, chairman, and CEO, William Li, remains the company’s beneficial owner. Li holds class C shares with super voting rights, maintaining Nio’s leadership structure. As of February 28, 2023, Li held 30,467,776 class A ordinary shares and 148,500,000 class C ordinary shares.
The strategic investment from CYVN further solidifies Nio’s financial position and augments its global expansion plans. While specific details of the updated shareholding and voting structure post-investment were not disclosed, the strengthened partnership signifies a significant step forward for both Nio and CYVN in the competitive electric vehicle landscape.
