NIO Inc., otherwise known as the "company," announced its entry to the Chinese market. The pioneer in the country’s premium smart electric vehicle market would enter into definitive agreements for investments into its China conglomerate along with a group of investors.
This Wednesday, pioneer premium smart electric vehicle company NIO Inc. announced that it would enter into definitive agreements for investments in its Chinese conglomerate along with investors such as Hefei City Construction and Investment Holding, Co., Ltd., Anhui Provincial Emerging Industry Investment Co., Ltd., and CMG-SDIC Capital Co.
The strategic investors would inject an aggregate of seven billion RMB into NIO Holding Ltd., the company’s conglomerate in China. NIO, on the other hand, would inject its core businesses and assets in the country, including its vehicle research and development, sales and services, supply chain, and NIO power.
The value of the agreement’s asset consideration is at 17.77 billion RMB based on an 85 percent average market value of NIO Inc. 30 days before April 21, 2020. NIO would also invest 4.26 billion RMB of cash into its Chinese conglomerate. Once the investments push through, NIO would earn 74.9 percent of controlling equity interests in the Chinese conglomerate while the strategic investors would collectively hold only 24.1 percent of NIO China.
The closing of the agreements for NIO China would end by the second quarter of 2020, depending on the customary closing conditions in the country. The strategic investors and NIO would inject the cash in five installments.
Source: business times