NIO Announces Us$2.2b Strategic Equity Investment From Abu Dhabi-Based Cyvn

NIO entered into a share subscription agreement with CYVN Holdings, through its affiliate CYVN Investments RSC, 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 Nio at a per share purchase price of US$7.50.

In July 2023, Nio 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 Nio’s total issued and outstanding shares.

The 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 to be exempt from registration. The investor and the company are both subject to certain lock-up arrangements for a period of six months following closing of the transaction.

Upon closing, CYVN will be entitled to nominate two directors to Nio’s board of directors so long as it continues to beneficially own no less than 15% of Nio’s outstanding share capital. If CYVN beneficially owns less than 15% but more than 5% of Nio’s outstanding share capital, it will be entitled to nominate one director to Nio’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.