Nio Inc. announced that Abu Dhabi-backed CYVN Holdings will invest $738.5 million in the Chinese electric vehicle maker to strengthen its balance sheet.
No, Xpeng and Li Auto are battling for EV market share in BYD’s (002594. SZ) world’s largest automotive market. Nio will give CYVN Holdings 85 million Class A shares at $8.72 each.
Nio’s U.S.-listed shares fell 1% to $9.30 after the news. CYVN will also buy some Nio shares from a Tencent affiliate.
The EV company said CYVN would own 7% of Nio and be able to nominate one director to its board after both deals close.
After the investment arrangement, Nio and CYVN will pursue worldwide business prospects. The EV maker’s first-quarter deliveries jumped 20% from 25,768 a year earlier.
Its cash and cash equivalents dropped to 14.76 billion yuan ($2.15 billion) in the first three months of the year from 19.89 billion at the end of 2022.
