China's Nio gets further $2.2bn investment from Abu Dhabi's CYVN

(Sharecast News) - Chinese electric car maker Nio said on Monday that Abu Dhabi-backed fund CYVN Holdings will invest a further $2.2bn in the loss-making company. Once the deal completes, CYVN will own a 20.1% stake in Nio. It will also be entitled to nominate two directors to the board.

US-listed shares in Nio surged in pre-market trade, and by 1130 GMT they were up 13.7%.

Nio chairman and chief executive William Bin Li said: "We are deeply inspired by CYVN's vision to accelerate the global transition to a more sustainable future, and we appreciate its endorsement of Nio's unique values.

"With the enhanced balance sheet, Nio is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities."

Jassem Al Zaabi, chairman and managing director of CYVN Holdings, said: "Our increased investment in Nio represents a continuation of our ongoing strategy to build a leading global portfolio in the mobility space.

"This transaction demonstrates our confidence in Nio's unique positioning and competitiveness in the global smart EV industry. We are excited to be a long-term strategic partner of Nio and support its efforts in product innovation, technological breakthroughs and international market expansion."

CYVN invested $738.5m in Nio in July. It also bought certain Class A ordinary shares from an affiliate of Tencent Holdings for $350m.