Geely to acquire 30% of Nio’s power unit as part of battery swapping, charging business deals
[SINGAPORE] A 30 per cent stake of Chinese electric vehicle giant Nio’s power unit will be acquired by a subsidiary of fellow EV company Geely.
This is part of a number of agreements relating to battery swapping and charging businesses.
As part of this transaction, Geely will also offer a 100 per cent equity interest of its subsidiary, Yiyi Internet Technology, on top of 640 million yuan (US$95 million) in cash.
Yiyi Internet Technology is a unit by Geely that provides battery swapping services for the commercial mobility market.
Post-transaction, Nio Power will be valued at about 16 billion yuan, a statement noted on Monday (Sep 28).
Nio Holdings, a subsidiary of Nio, will continue to hold a controlling equity interest of 63.6 per cent after the deal is completed. An existing investor, Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership, will hold the remaining 6.4 per cent.
“The finalisation and implementation of these plans are subject to further discussions between the relevant parties,” said Nio.
Shares of Nio ended 0.3 per cent or US$0.01 down at US$3.63 on Friday.
