Shanghai (ZXZC)- NIO, China’s top EV startup, signed on April 29 with a group of strategic investors the definitive agreements pursuant to which the latter will plow RMB7 billion collectively into NIO China, the EV manufacturer announced via its WeChat account.

(Photo source: NIO)

Under the agreements, the strategic investors, led by Hefei City Construction and Investment Holding (Group) Co., Ltd., CMG-SDIC Capital Co., Ltd., and Anhui Provincial Emerging Industry Investment Co., Ltd., will pump cash into NIO (Anhui) Holding Ltd., the legal entity of NIO China. NIO said it will imbue NIO China with its core businesses and assets in China, involving complete vehicle R&D, supply chain, sales & service, as well as NIO Power.

The aforesaid businesses and assets are valued at RMB17.77 billion, as calculated based on 85% of the average market value of NIO Inc. over the thirty public trading days preceding April 21, 2020.

Moreover, NIO will also invest RMB4.26 billion in NIO China.

Upon completion of the above transactions, NIO China will be held as to 75.9% by NIO and 24.2% by the strategic investors.

In the meantime, NIO struck a deal with the local government of Hefei Economic and Technological Development Area (HETA) for the establishment of NIO China’s headquarters. According to the agreement, the Hefei-based headquarters is designed to be a base that integrates functions of business operation, R&D, sales & services, supply chain and manufacturing. The construction of the second manufacturing base will kick off there at a proper moment.

“The investment is another important milestone of NIO for its long-term growth,” said the company, because it will offer the startup more adequate funds to prop up its business development, to consolidate its leadership in products and technologies of smart electric vehicles, and to provide users with better service experience.