BYD Co to offer $400 million in new shares
BYD Co, the Chinese automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc, is offering $400 million in new stock, according to Bloomberg News.
The funds would allow Shenzhen-based BYD room to increase investments and bolster production of electric vehicles. Selling shares would also help alleviate the strain on a balance sheet saddled with surging debt.
The company has an option to increase the offering by $100 million, according to the term sheet obtained by Bloomberg news.
Cary Wei, a Shenzhen-based BYD public relations manager, declined to comment.
The sale comes after BYD reported profit tumbled 89 percent in the first quarter because of declining demand for its gasoline-fueled vehicles. (Photo 3)