Samsung buys $610m stake in carmaker BYD

BEIJING • Samsung Electronics is to pay 3 billion yuan (S$610 million) for a stake in Chinese carmaker and rechargeable batteries firm BYD, the Chinese company said in a stock exchange filing yesterday.

Carmakers and technology companies have formed a series of partnerships in recent years as the race to develop electric, self-driving, internet-connected vehicles has created demand for more electronics components and software.

The Samsung investment has been made through Chinese subsidiary Shanghai Samsung Semiconductor and gives the South Korean firm a 1.92-per-cent stake in BYD, making it the ninth largest investor in the company.

BYD, which also counts US investor Warren Buffet's Berkshire Hathaway as a backer, began as a battery maker for personal electronics before launching its automotive business, with a focus on electric and hybrid vehicles.

A total of six investors bought BYD shares in a placing at 57.40 yuan per share, a discount to yesterday's closing share price of 61.94 yuan.

REUTERS

A version of this article appeared in the print edition of The Straits Times on July 22, 2016, with the headline 'Samsung buys $610m stake in carmaker BYD'. Print Edition | Subscribe