Xiaomi takes 5.34% stake in Sunwoda EV battery unit
Xiaomi injected RMB 1.7 billion, about $255 million, for a 5.34% stake in Sunwoda's EV battery unit, becoming its third-largest shareholder.
Xiaomi injected RMB 1.7 billion, equivalent to about $255 million, to take a 5.34% stake in Sunwoda Electric Vehicle Battery, according to a disclosure dated 29 October carried by ChinaEVHome.
Xiaomi thereby becomes the third-largest shareholder in Sunwoda after the company itself and Li Auto, according to the disclosure.
The post-investment valuation reached about RMB 31.8 billion, according to the same source.
In the same context, the disclosure showed the cancellation of a planned listing on the Hong Kong Stock Exchange in the same round.
What do these terms mean?
Post-investment stake: The ownership percentage an investor obtains after injecting new money into a company, calculated on the new valuation.
Strategic shareholder: An investor who buys a stake not only to make a quick profit but to build an industrial or technical partnership with the company.
Hong Kong Stock Exchange listing: Offering a company's shares for public trading on Hong Kong's financial market.
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