Asia Tech Wire (June 18) -- Chinese electric car maker BYD on Tuesday responded to billionaire investor Warren Buffett's continued reduction in its holdings.
Buffett's Berkshire Hathaway reduced its stake in BYD by 1,347,500 shares on June 11, at an average price of HK$230.46 per share, according to the Hong Kong stock exchange's latest disclosure.
At the average price, Buffett's reduction totaled about HK$311 million in cash.
After this transaction, Berkshire Hathaway's stake in BYD's Hong Kong-listed shares dropped from 7.02% to 6.9%.
Regarding the reason for Buffett's reduction, a BYD source told Chinese media outlet 21st Century Business Herald, "The company is communicating with the other party."
Asked if the company's valuation was high, the person said, "The company's business situation is good, and sales and profits have maintained growth."
It is worth noting that this is the 14th public disclosure that Buffett reduced its holdings of BYD H shares.
In September 2008 Berkshire Hathaway spent HK$1.8 billion to buy 225 million BYD's Hong Kong-listed shares at HK$8 per share.
After holding the shares for more than 10 years, Buffett has reduced its stake in BYD since August 2022, with its shareholding slipping from 19.92% to 6.9% today.