warren-buffett-to-purchase-10-of-byd

Warren Buffett to purchase 10% of BYD

The Sage from Omaha spends $230 million on a stake in the world's second largest rechargeable battery producer as the company nears completion of its first electric car.

By Daniel Inman

September 29, 2008

MidAmerican Energy Holdings, a subsidiary of Warren Buffett's Berkshire Hathaway, has agreed to purchase HK$1.8 billion $230 million of shares in Hong Kong-listed BYD Company, the world's second largest producer of rechargeable batteries. MidAmerican will subscribe to 225 million new H-shares at a price of HK$8 per share, representing a discount of 4.8% to the closing price last Friday.

The shares represent approximately 9.9% of BYDÆs enlarged share capital, and 28.4% of its enlarged H-share capital.

The deal gave BYD's shares a massive boost. Trading in the stock was suspended yesterday morning at the company's request, but resumed after lunch at which point investors jumped in to get a...

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