On the afternoon of April 29, NIO signed a definitive agreement on investment in NIO with strategic investors such as Hefei Construction Investment Holdings (Group) Co., Ltd., SDIC China Merchants Investment Management Co., Ltd. and Anhui High-tech Industrial Investment Co. and reached an agreement with Hefei Economic and Technological Development Zone on the settlement of NIO China headquarters.
According to the investment agreement, strategic investors will invest 7 billion yuan (~US$1 billion) in NIO-China. NIO will inject NIO (Anhui) Holdings Co., Ltd., the legal subject of NIO-China, into China’s core business and related assets including vehicle research and development, supply chain and manufacturing, sales and service, energy services, etc. The above business and assets are valued at RMB 17.77 billion (~US$2.53 billion) based on 85% of the average market value of NIO in the 30 public trading days before April 21, 2020.
In addition, NIO will invest 4.26 billion yuan (~US$600million) in NIO-China. After the transaction is completed, NIO will hold 75.9% of the controlling shares in NIO-China, and strategic investors will hold a total of 24.1% of the shares.
According to the agreement signed between NIO and Hefei Economic and Technological Development Zone, NIO will set up a Chinese headquarters in Hefei Economic and Technological Development Zone, establish an integrated base for headquarters management, R & D, sales services, supply chain manufacturing, and timely start the planning and construction of its second manufacturing base. Hefei gov. will also fully support the establishment of NIO’s China headquarters and the follow-up R & D and manufacturing base construction.
After receiving the strategic investment, NIO will have more abundant funds to support business development, to ensure the continuous introduction of leading smart electric vehicle products and technologies, and to provide users with a better service experience.
On February 25th 2020, NIO Automobile and Hefei City signed a cooperation framework agreement, announcing that NIO China headquarters project will be settled in Hefei, and officially launched the mass production project of NIO EC6, an intelligent electric coupe SUV. At that time, Hefei gov. said that it would invest in the NIO China headquarters project through designated investment companies and market-oriented investors.