May 27, 2015 / 4:32 AM / 2 years ago

China's BYD says plans fundraising to boost battery capacity, new models

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

BEIJING (Reuters) - BYD Co Ltd (002594.SZ)(1211.HK) plans to use funds raised in a potential private placement to boost battery production capacity and develop new models, said the Chinese automaker backed by billionaire Warren Buffett’s Berkshire Hathaway Inc (BRKa.N).

BYD made the announcement via a posting on a Shenzhen stock exchange affiliated website. A company spokeswoman confirmed the posting, but declined to give further details.

On Tuesday, Thomson Reuters publication IFR reported that BYD was planning to raise up to 12 billion yuan ($1.9 billion) in the placement.

BYD halted trading in both H- and A-shares on Monday, saying it was preparing for a potential private placement.

In its website posting, BYD said it had discussed the fundraising with representatives of minority shareholder Fortune SG Fund Management.

BYD, one of the largest Chinese automakers not owned by the government, is trying to expand its share of the electric and hybrid vehicle market and already sells its electric buses and taxis in the United States and Southeast Asia, among other markets.

Reporting by Jake Spring; Editing by Miral Fahmy

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