CYVN Holdings, a smart mobility investment vehicle with a 75% ownership stake controlled by the Abu Dhabi government, has announced plans to invest a total of $738.5 million in the Chinese EV manufacturer, Nio.
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings confirmed the funding in a news release on Tuesday.
According to the release, the closure of the Investment Transaction is anticipated to occur in early July 2023 and is subject to customary closing conditions.
By partnering with global market leaders and investing in them, the Shanghai-based company claims it seeks to develop a smart transportation platform.
The NYSE-listed Nio will issue 84,695,543 Class A common shares for $8.72 each.
Additionally, CYVN has a contract with a subsidiary of Tencent, which made a 2017 investment in Nio, to acquire 40,137,614 Class A common shares from the social and gaming behemoth.
“Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market,” said Al Zaabi.
William Bin Li, founder, chairman and chief executive officer of NIO added that:
“We are excited about the prospect of partnering with CYVN Holdings to expand our international business.
“With the vision of Blue Sky Coming, we will continue to strive for technological breakthroughs and user experiences beyond expectations, contributing to a more sustainable future for the globe.”