{Economic Information Agency, June 28} NIO (09866) rose 1.71%, to HK$28.54, while Geely Automobile (00175) rose 1.54%, to HK$15.84.
NIO announced it has entered into formal agreements with certain subsidiaries of Geely Holding Group regarding strategic transactions in battery swap and charging businesses. Geely's subsidiaries will subscribe for newly issued equity in NIO Energy using their entire equity interest in YiYi Interconnected Technology (Chongqing), plus RMB 640 million in cash. Upon completion of the transaction, Geely will hold 30% equity in NIO Energy, while NIO China will continue to hold a controlling stake of 63.6%. Existing investor Wuhan Guangchuang Emerging Fund will hold 6.4%. The post-investment valuation of NIO Energy from this transaction is approximately RMB 16 billion.
On the other hand, NIO China agrees to subscribe for new equity in Haohan Energy, a charging business company under Geely, with cash, and will hold 10% equity upon completion. The cash consideration will be used by Haohan Energy to purchase certain charging assets from NIO; the amount of this investment was not disclosed in the announcement.
NIO and Geely have also formulated preliminary plans for consumer vehicle models and mobility service vehicles under Geely-affiliated enterprises to adopt battery swap technology and related service provisions, with specific arrangements subject to further discussion. The aforementioned equity transactions are subject to regulatory approvals and other customary closing conditions.
Currently, the Hang Seng Index stands at 24,669, up 159 points or 0.6%, with over HK$8 billion traded on the main board. The Hang Seng China Enterprises Index stands at 8,235, up 69 points or 0.9%. The Hang Seng Tech Index stands at 4,322, up 10 points or 0.2%. The current-month HSI futures are at 24,675, up 153 points, at a premium of 6 points. The current-month HSCEI futures are at 8,235, up 69 points, at par. The current-month Tech Index futures are at 4,322, up 7 points, at a premium of 3 points. (nw)
NIO announced it has entered into formal agreements with certain subsidiaries of Geely Holding Group regarding strategic transactions in battery swap and charging businesses. Geely's subsidiaries will subscribe for newly issued equity in NIO Energy using their entire equity interest in YiYi Interconnected Technology (Chongqing), plus RMB 640 million in cash. Upon completion of the transaction, Geely will hold 30% equity in NIO Energy, while NIO China will continue to hold a controlling stake of 63.6%. Existing investor Wuhan Guangchuang Emerging Fund will hold 6.4%. The post-investment valuation of NIO Energy from this transaction is approximately RMB 16 billion.
On the other hand, NIO China agrees to subscribe for new equity in Haohan Energy, a charging business company under Geely, with cash, and will hold 10% equity upon completion. The cash consideration will be used by Haohan Energy to purchase certain charging assets from NIO; the amount of this investment was not disclosed in the announcement.
NIO and Geely have also formulated preliminary plans for consumer vehicle models and mobility service vehicles under Geely-affiliated enterprises to adopt battery swap technology and related service provisions, with specific arrangements subject to further discussion. The aforementioned equity transactions are subject to regulatory approvals and other customary closing conditions.
Currently, the Hang Seng Index stands at 24,669, up 159 points or 0.6%, with over HK$8 billion traded on the main board. The Hang Seng China Enterprises Index stands at 8,235, up 69 points or 0.9%. The Hang Seng Tech Index stands at 4,322, up 10 points or 0.2%. The current-month HSI futures are at 24,675, up 153 points, at a premium of 6 points. The current-month HSCEI futures are at 8,235, up 69 points, at par. The current-month Tech Index futures are at 4,322, up 7 points, at a premium of 3 points. (nw)
