Leidi.com Rakuten June 20
Weilai Group (NYSE: NIO; HKEx: 9866; SGX: NIO) announced today that it has entered into a share subscription agreement with CYVN Holdings LLC.
CYVN Holdings is an investment entity with a majority stake owned by the Abu Dhabi government, with a strategic focus on the field of advanced and intelligent mobility.
Pursuant to the Share Subscription Agreement, investors will contribute a total of $738.5 million in cash at a purchase price of $8.72 per share (i.e., Class A common stock listed on the New York Stock Exchange for seven consecutive trading days immediately before June 19, 2023). Volume-weighted average price (adjusted for the ratio of ADSs to Class A ordinary shares)) to subscribe for 84,695,543 newly issued Class A ordinary shares of the Company (the "Investment Transaction"). The investment transaction is subject to customary closing conditions, which are expected to take place in early July 2023.
Investors have agreed not to sell, transfer or dispose of any shares acquired in the investment transaction within six months of Closing.
At the same time, NIO is aware that the investor has entered into a share purchase agreement with an affiliate of Tencent (existing shareholder), pursuant to which the investor will purchase 40,137,614 Class A ordinary shares of the company beneficially owned by the existing shareholder (secondary share transfer ). If calculated at US$8.72 per share, Tencent can cash out US$350 million.
After the completion of the investment transaction and the secondary share transfer, the investor will beneficially own approximately 7% of the total issued and outstanding shares of NIO.
At or after the closing of the investment transaction, investors will have the right to nominate a director to the company's board of directors, provided that they continue to beneficially own no less than 5% of NIO's issued share capital.
In addition, NIO and the investor agreed to work together to seek opportunities to develop NIO's international business after the investment transaction is completed.
NIO CEO Li Bin said that NIO has today signed a share subscription agreement with CYVN Holdings, an investment institution under the Abu Dhabi government of the United Arab Emirates. CYVN will make a total of approximately US$1.1 billion in strategic investment through private placement and transfer of old shares, and will conduct strategic cooperation in NIO's international business.
"CYVN Holdings is an investment institution with a majority stake held by the Abu Dhabi government. It focuses on strategic investment and layout in the field of advanced, intelligent and sustainable mobility, and is committed to cooperating with global industry leaders in this field. This time CYVN The investment in NIO reflects the unique value of NIO in the global smart electric vehicle industry and will provide continuous impetus for our long-term development."
Li Bin also revealed, "It took only three weeks from the discussion to the signing of the agreement for this cooperation, which shows Abu Dhabi's determination to invest in technological innovation and clean energy transformation, its high efficiency in decision-making and execution, and its vision and execution. It is highly consistent with the concepts of NIO Vision and Action. I believe that the cooperation between the two parties will further promote the early realization of the vision of Blue Sky Coming."
"Our strategic investment in NIO comes from our high recognition of NIO's leading brand position, innovative high-end products and technical capabilities in the smart electric vehicle market." Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings Said: "We are very pleased to establish a strategic partnership with NIO and fully provide strategic support for NIO's international business growth. We will join hands with NIO to promote global energy transformation and sustainable development of human society."
As of today's close, Weilai's Hong Kong stock price was HK$73.35, with a market value of HK$123.8 billion.
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