BYD Co to of­fer $400 mil­lion in new shares

China Daily (Canada) - - NEWSCAPSULE -

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)

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