NIO-SW receives a strategic investment of 3.3 billion RMB in NIO China from investors
NIO-SW announced that it has reached an agreement with strategic investors to invest 3.3 billion yuan in NIO China. Investors include Hefei Jianheng New Energy Automobile Investment Fund, Anhui Provincial High-Tech Industry Investment Limited Company, and Guotou Zhaoshang Investment Management Co., Ltd. After the investment is completed, NIO will hold 88.3% of NIO China's controlling rights, while strategic investors and other shareholders will hold 11.7%. In addition, NIO has the right to make additional investments of 20 billion yuan before 2025. This move will enhance NIO's competitiveness in the electric vehicle market and drive sustainable growth
According to the news from Zhitong Finance and Economics APP, NIO-SW (09866) announced on September 29, 2024 - NIO Group (NYSE: NIO; HKEX: 9866; SSE: NIO), a pioneer and leader in the global smart electric vehicle market, has reached a final agreement with Hefei Jianheng New Energy Automobile Investment Fund Partnership Enterprise (Limited Partnership), Anhui Provincial High-Tech Industry Investment Co., Ltd., and Guotou Zhaoshang Investment Management Co., Ltd. (collectively referred to as "strategic investors") regarding its investment in NIO Holdings Limited (NIO China), its Chinese subsidiary holding 92.1% controlling interest.
Under this agreement, the strategic investors will invest a total cash amount of RMB 3.3 billion (strategic investment amount) to subscribe for new shares issued by NIO China. At the same time, NIO will invest a total cash amount of RMB 10 billion (NIO investment amount) to subscribe for new shares issued by NIO China (referred to as the "investment transaction"). After the completion of the investment transaction, NIO will hold 88.3% controlling interest in NIO China, while the strategic investors, together with other existing shareholders, will collectively hold the remaining 11.7% equity in NIO China.
In addition to the NIO investment amount, NIO also has the right to make an additional investment of RMB 20 billion to subscribe for additional shares of NIO China before December 31, 2025, at the same price and conditions as the investment transaction.
The investment transaction is subject to regulatory and internal approvals as well as the satisfaction of customary closing conditions. The strategic investors and NIO will each inject cash into NIO China in two installments. 70% of the strategic investment amount and NIO investment amount will be completed by the end of November 2024, with the remaining 30% to be injected by the end of December 2024.
This investment not only demonstrates the strategic investors' firm support for the high-quality development of the electric vehicle industry but also reflects their high recognition of NIO's unique value and industry-leading position. With a strengthened balance sheet, NIO will strategically maintain its long-term advantages in technology, products, services, and user community, drive its multi-brand strategy, enter broader markets, and lead the company into the next stage of sustainable growth
