NIO announces investment support from CYVN Holdings

NIO Inc., a Chinese pioneer player in the premium smart electric vehicle market, announced today that it has reached a share subscription agreement with CYVN Holdings L.L.C. (referred to as the "Investor" or "CYVN Holdings"), an investment entity primarily owned by the Abu Dhabi Government focused on advanced and smart mobility.
Under the agreement, the Investor will invest a total of US$738.5 million in cash to subscribe to 84,695,543 newly issued Class A ordinary shares of NIO at a per share purchase price of US$8.72. This price represents the volume weighted average price of Class A ordinary shares on the New York Stock Exchange over the seven consecutive trading days leading up to June 19, 2023 (referred to as the “Investment Transaction”).

The completion of the Investment Transaction is subject to customary closing conditions and is expected to occur in early July 2023. As part of the agreement, the Investor has committed not to sell, transfer, or dispose of any shares acquired in the Investment Transaction for a period of six months following the closing.

Meanwhile, NIO said it is aware that the Investor has entered into a share purchase agreement with a Tencent affiliate, whereby the Investor will purchase 40,137,614 Class A ordinary shares of NIO owned by the affiliate (the "Secondary Share Transfer"). Upon the completion of both the Investment Transaction and Secondary Share Transfer, the Investor will hold approximately 7.0% of the total issued and outstanding shares of NIO.

Upon or after the closing of the Investment Transaction, the Investor will have the right to nominate one director to NIO's board of directors, as long as it maintains a beneficial ownership of at least 5% of NIO's outstanding share capital.

Furthermore, NIO and the Investor have agreed to collaborate in pursuing opportunities for NIO's international business following the completion of the Investment Transaction.