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- Chinese electric vehicle company Nio announced on Tuesday that it secured $738.5 million in new capital from a fund owned by the Abu Dhabi government.
- The deal is priced at $8.72 per share, a release said. That was 6.7 percent below the closing price of Nio’s U.S.-listed shares on Tuesday.
- Over the past few months, Middle Eastern investors have increasingly looked to China for opportunities, especially in electric vehicles.
The NIO ET5 is displayed at the Central China International Auto Show in Wuhan, China, on May 25, 2023.
Getty Images | Getty Images News | Getty Images
Beijing – China Electric Vehicle Company Nioh It announced on Tuesday that it secured $738.5 million in new capital from a fund owned by the Abu Dhabi government.
The strategic investment culminated in fund CYVN Holdings taking a 7% stake in NIO.
The deal is priced at $8.72 per share, a release said. That was 6.7 percent below Nio’s U.S.-listed stock’s closing price on Tuesday, down about 0.5 percent.
Nio said earlier this month Sluggish car deliveries hit cash flow, And it’s postponing capital expenditures and some R&D projects.
The company said at the time that it had enough cash to support its business. NIO disclosed cash and cash equivalents of 14.76 billion yuan ($2.07 billion) as of March, down from the levels it disclosed at the end of 2021 and 2022.
Over the past few months, Middle Eastern investors have increasingly looked to China for opportunities, especially in electric vehicles.
Chinese funds also set their sights on Middle East capital Investors from the U.S. and elsewhere are wary of China due to regulatory uncertainty.
The deal with the Abu Dhabi fund is expected to close in early July, after which they plan to “pursue opportunities in Nio’s international business,” Nio said.
The agreement also gives CYVN the right to nominate directors to NIO’s board of directors, the announcement said.
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