BYD seeks permission to issue A shares in Shenzhen
- Source: Global Times
- [08:07 July 17 2009]
- Comments
By Cong Mu
BYD e6
Hong Kong-listed BYD yesterday said it plans to apply to the Shenzhen Stock Exchange for permission to issue yuan-denominated A shares, a proposal that needs approval from shareholders and regulators.
The company intends to issue no more than 100 million shares, or 4 percent of its enlarged share capital, with the nominal value of 1 yuan per share, BYD said in a filing to the Hong Kong Stock Exchange.
That means BYD is expected to raise at least 100 million yuan ($14.7 million), which will be used to fund its production of cell phone batteries, expansion of automobile businesses and projects on new energy, BYD said.
MidAmerican Energy, a unit of Warren Buffett's Berkshire Hathaway, bought a 10 percent stake in BYD for $230 million in September 2008. The A-share offering will establish a new financing platform and improve its competitiveness, the company said.
In addition, BYD is in talks with Hunan-based Media Bus on a potential buyout, estimated at 100 million yuan, National Business Daily newspaper reported yesterday.
The shareholders approved BYD's A-share listing proposal in March 2008 but unsatisfactory market performance in 2008 forced the company to hold back.
In 2008, the Shanghai Composite Index declined 65 percent and was at 1,820.81 on December 31, 2008.
BYD rose HK$1.05 (14 cents) to HK$37.85 ($4.88), up 2.85 percent yesterday.
The shareholder meetings will be held around September 11, according to the statement. The company proposed to appoint the accountant firm Ernst & Young Hua Ming to oversee the A-share issue, the statement said.