Buffett-backed Chinese automaker BYD plans up to $1.9 billion placement: IFR

Tue May 26, 2015 3:15am EDT
 
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HONG KONG (Reuters) - Chinese automaker BYD Co Ltd (002594.SZ: Quote)(1211.HK: Quote), backed by Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote), plans to raise up to $1.9 billion in a share offering in mainland China, IFR reported on Tuesday, citing a source familiar with the plans.

The private placement aims to raise between 10 billion yuan and 12 billion yuan, with a placement proposal out in early June, added IFR, a Thomson Reuters publication.

Shares of BYD, which makes hybrid and electric vehicles, were halted in Shenzhen on Monday at the company's request after it unveiled plans for a possible private placement, while trading in Hong Kong was halted on Tuesday, following a holiday the previous day. The company disclosed no details of the placement.

BYD did not respond to a Reuters email request for comment.

China Merchants Securities, Guosen Securities and UBS Securities were working on the deal, with other banks joining the deal later, added IFR.

(Reporting by Ken Wang and Fiona Lau of IFR; Writing by Elzio Barreto; Editing by Clarence Fernandez)

 
A man walks past a BYD store in Wuhan, Hubei province, March 20, 2014.  REUTERS/Stringer