BYD to Raise Up to 500$ Million via Share Placementc

HONG KONG--Chinese car and battery maker BYD Co., partly owned by Warren Buffet's Berkshire Hathaway Inc., is seeking to raise up to US$500 million through a share placement meant to fund its expansion plan.
BYD, which is listed in Hong Kong and Shenzhen, is seeking to issue US$400 million of new shares to institutional investors, with an option to sell an additional US$100 million if there is a strong demand, according to a term sheet seen by The Wall Street Journal on Friday.
The offering price will be HK$35-HK$37 each, representing a discount of 14.9%-10.1% from the closing price of HK$41.15 during the morning session. Trading of the shares was suspended before the afternoon session, pending the release of market-sensitive information.
BYD has struggled with weak auto sales and intensifying competition both from local and foreign rivals. In April, it reported a 89% plunge in first-quarter net profit because of weak demand for its low-end gasoline cars, and as domestic interest for all-electric vehicles remains lackluster.
Write to Joanne Chiu at joanne.chiu@wsj.com

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(END) Dow Jones Newswires

May 23, 2014 02:15 ET (06:15 GMT)