(Yicai Global) Feb. 18 -- Geely Automobile Holdings and electric vehicle startup Nio have declined to comment on speculation that the leading Chinese carmaker will invest USD300 million to become Nio's third-largest shareholder.
Hong Kong-based Geely is unaware of the investment and refused to comment further, while Shanghai-based Nio declined to pass any remarks, The Paper reported today.
Nio logged a CNY2.6 billion (USD371.3 million) third-quarter loss and is on a drive to raise cash. Since the start of the year, it has secured USD200 million in two separate financing deals. The firm has said that it is moving ahead with several other financing projects and will disclose any progress per the law. It is focusing on investments that can bring strategic value to its development in China.
A previous rumor of a USD1 billion injection of funds from Guangzhou Automobile Group also remains uncertain.
Shares of Nio [NYSE:NIO] fell almost 6.5 percent yesterday to USD3.77 each. They have declined 65 percent from a 52-week high of USD10.64. Geely Automobile [HKG:0175] ended trading today unchanged at HKD15.06 (USD1.94).
Editor: Kim Taylor