The Abu Dhabi government injects funds to Weilai Motor, a Chinese electric vehicle manufacturer facing losses, obtained a 7%equity of Weilai and a board seat for about $ 1.1 billion (about 1.47 billion yuan).
According to Bloomberg, Weilai announced on Tuesday (June 20) that the investment entity Cyvn Holdings LLC controlled by Abu Dhabi agreedNewly issued a category A shares, which is $ 8.72 per share.
In addition, Cyvn will also acquire another 40 million shares from the Chinese Internet giant Tencent Holdings, which will receive a total of 7%of Weilai.According to the agreement, as long as CYVN continues to maintain at least 5%of the shares, you can nominate a director to Weilai Board.
Weilai, based in Shanghai, announced this month that due to the decline in shipments, losses in the first quarter exceeded expectations.At the same time, the uncertainty of demand is also more worried about its prospects for its competitive Chinese electric vehicle market.
Li Bin, CEO of Weilai, said in the announcement that CYVN's investment will further strengthen the company's balance sheet and support the company to continue to accelerate business growth.After the transaction was completed, the two parties agreed to jointly cooperate to seek development opportunities for Weilai International's business.
