Geely to acquire 30% of Nio’s power unit as part of battery swapping, charging business deals
Post-transaction, Nio Power will be valued at about 16 billion yuan
Geely will acquire a 30% stake in Nio's power unit as part of battery swapping and charging business deals, according to a statement released on Monday (Sep 28). This acquisition is part of multiple agreements between the two companies. In addition to the stake purchase, Geely will also transfer its entire ownership (100% equity) of Yiyi Internet Technology, a subsidiary that provides battery swapping services for the commercial mobility market, to Nio Power. Geely will contribute a cash infusion of 640 million yuan (US$95 million) as well.
Post-transaction, Nio Power is expected to be valued at approximately 16 billion yuan, although the finalization and implementation of these plans are contingent on further discussions between the involved parties, as stated by Nio. Currently, Nio Holdings, a subsidiary of Nio, holds a controlling equity interest of 63.6% in Nio Power, while an existing investor, Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership, will retain the remaining 6.4% stake.
Nio's shares declined by 0.3%, or US$0.01, to US$3.63 on Friday.
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