China's privately owned battery and automobile maker BYD Co is planning to raise capital for new projects through issuance of as many as 100 million A shares on the Shenzhen Stock Exchange, Reuters reported yesterday.
The capital raised would be mainly used to fund the company's lithium-ion battery production, auto research and development, expansion of auto products and parts, as well as a solar battery program, with the rest to be used as working capital, according to BYD.
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BYD had filed for a 58.5-million A shares listing in Shenzhen or Shanghai in January last year but later postponed the issue as the A-share market weakened due to the financial crisis last year.
"BYD wants to be the world leader in the electric car segment, so they need a lot of capital to further develop own technologies and improve capability," said an auto analyst familiar with BYD's plans. "And it also needs money to fund its other expansion programs."
Earlier this week, BYD's sales manager Wang Jianjun admitted that his company planned to acquire idled Hunan Sanxiang Bus Group, and was considering producing new energy buses, with the first batch of 1,000 units to be delivered to the Shenzhen municipal government.
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1 comment:
Buffett See's Immense Value In Chinese Car Company
by -- James Korn
July 17, 2009
"Warren Buffet made his second purchase outside the US in BYD Co (BYDDF.PK). Buffet purchased another $500 million worth of shares in the company. In addition, Volkswagen AG and BMW are planning to partner with BYD to produce hybrid and battery-powered vehicles. Volkswagen and BMW recognized that hybrids and electric vehicles are the future in the auto industry, especially when foreign automakers want to enter into Chinese market. Wang Kornfu, Chairman of BYD confirmed that he has held talks with Europe and US carmakers about supplying 100 million batteries per year."
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