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NIO signs battery-swap deal with Geely Holding Group
NIO said it signed definitive agreements with Geely Holding Group subsidiaries for a battery-swapping and charging transaction, with closing subject to approvals.
- NIO said the deal values NIO Power at about RMB16 billion.
- A Geely Holding Group subsidiary will subscribe for NIO Power equity using RMB640 million in cash and 100% of Yiyi Internet Technology.
- NIO China will also subscribe for 10.0% of Zhejiang Haohan Energy Technology after closing.
NIO said on Sept. 27 it entered definitive agreements with certain subsidiaries of Zhejiang Geely Holding Group Co., Ltd. for a strategic transaction in battery swapping and charging businesses. Closing remains subject to regulatory clearances and other customary conditions.
Under the deal, a Geely Holding Group subsidiary will use its 100% holding in Yiyi Internet Technology (Chongqing) Co., Ltd. and RMB640 million in cash to subscribe for new equity in NIO Energy Investment (Hubei) Co., Ltd., or NIO Power. The transaction values NIO Power at a post-money valuation of about RMB16 billion.
After completion, the Geely Holding Group subsidiary will hold 30.0% of NIO Power. NIO Holding Co., Ltd., or NIO China, will keep 63.6%, and Wuhan Guangchuang Emerging Technology Phase I Venture Capital Fund Partnership (Limited Partnership) will hold 6.4%.
The Geely Holding Group stake is subject to post-closing adjustments tied to operational milestones. It may be reduced to no less than 20% if performance falls short.
The subsidiary also has an option to invest another RMB640 million within the earlier of two years after closing or the date NIO Power signs binding agreements for a new financing round. Without any post-closing adjustment, that would take its stake to 34.0% and leave NIO China with 60.0%.
In a separate step, NIO China agreed to subscribe for newly issued equity in Zhejiang Haohan Energy Technology Co., Ltd., a Geely Holding Group battery-charging business. The cash consideration will be used to buy certain charging assets from NIO, and NIO China will hold 10.0% after completion.
NIO and Geely Holding Group also laid out preliminary plans for adopting battery-swapping technology and related services for consumer-facing vehicle models and commercial mobility businesses from Geely-related entities. The companies said finalization and implementation remain subject to further talks.
Source: GlobeNewswire,