32.5 C
Dubai
Monday, October 2, 2023
spot_img

China’s Nio to get nearly $740 million in investment from Abu Dhabi-backed firm

[ad_1]

June 20 (Reuters) – Abu Dhabi government-backed CYVN Holdings will invest about $738.5 million in Nio Inc to strengthen the company’s balance sheet, the Chinese electric car maker said on Tuesday.

Nio and peers Xpeng and Li Auto are all vying for a bigger slice of the EV market in the world’s largest auto market dominated by BYD (002594.Shenzhen).

Under the agreement, NIO will issue approximately 85 million new Class A shares to CYVN Holdings at a price of $8.72 per share.

The news sent Nio’s U.S.-listed shares down about 1 percent to $9.30.

CYVN also has a deal with an affiliate of Tencent Holdings (0700.HK)in which case it will acquire some shares of Nio.

After the two deals, CYVN will own 7% of NIO, the electric car maker said, adding that the stake would give the investment firm the right to nominate a director to NIO. Board of Directors.

After the investment transaction is completed, Nio said it will jointly pursue global business opportunities with CYVN.

The electric carmaker’s first-quarter deliveries were up about 20% from 25,768 a year earlier.

Its cash and cash equivalents fell to 14.76 billion yuan ($2.15 billion) in the first three months of this year from 19.89 billion yuan at the end of the fourth quarter of 2022.

Reporting by Akash Sriram and Tanya Jain in Bengaluru; Editing by Shailesh Kuber

Our standards: Thomson Reuters Trust Principles.

[ad_2]

Source link

Related Articles

Abu Dhabi’s LuLu Group launches huge mall in Hyderabad

Abu Dhabi's LuLu Group has entered Telangana with the opening of a 500,000 sqft mall and hypermarket in Hyderabad. The group plans to invest...

Masdar and PLN to triple ASEAN’s largest floating solar plant

Masdar and PLN Nusantara Power (PLN NP) have signed an agreement to expand Phase II of the Cirata floating photovoltaic (FPV) power plant in...

Abu Dhabi’s IHC to sell stakes in two Adani companies

Abu Dhabi's International Holding Company (IHC) has announced its intention to divest its stakes in two Adani Group companies in India amid ongoing fraud...

UAE President condoles with Bahrain’s King for fallen heroes

Sheikh Mohamed bin Zayed Al Nahyan, the UAE President, called King Hamad bin Isa Al Khalifa of Bahrain today.He offered condolences for the martyrs...

UAE Weather: Expect a gradual drop to 21ºC.

The National Centre of Meteorology forecasts a generally fair day with light to moderate winds. Temperatures may reach up to 42ºC nationwide, with highs...

Latest Articles