Berkshire Hathaway, the investment company owned by Warren Buffett, has further cut its stake in electric vehicle maker BYD (1211) to less than 10 percent after cashing in HK$462.09 million.
It sold 1.96 million shares at an average price of HK$235.64 on May 2, after which, Berkshire's holdings in BYD's issued H-shares were lowered to 9.87 percent from 10.05 percent, a filing to the Hong Kong stock exchange yesterday showed.
This came as Vietnam said BYD plans to produce electric vehicles in the Southeast Asian nation and expects support from the government to do so, following last Friday's meeting between Deputy Premier Tran Hong Ha and the automaker's chairman and founder, Wang Chuanfu.
Wang expects Vietnam to create "favorable conditions" for BYD to complete investment procedures so it can quickly start making EVs to be sold locally and in other parts of Southeast Asia, according to a report on a government website late Friday after the meeting in Hanoi. The company plans to form a local supply chain.
Meanwhile, BYD denied reports of mass resignation of workers at two factories in Changsha. Mainland media reported earlier that the EV company used excuses such as "resignation quotas are full" to retain staff who would like to leave.
Separately, HSBC Global Research trimmed the target price for BYD from HK$452 to HK$450 but kept a "buy" rating.
This came before Geely Automobile (0175) said it sold 113,642 cars last month, which was 58 percent more compared to last year. For the first four months of this year, the total sales were 436,095 units, up by 10 percent from the previous 12 months.
Warren Buffett has further trimmed his BYD stake. Reuters, AP
