BYD unbundling phone business sector to invest in the auto industry

BYD (1211.HK) yesterday announced further details of unbundling its business. BYD is expected to gain nearly 6.2 billion Hong Kong dollars from this process.

According to BYD's notice yesterday, its subsidiary BYD electrons, is to be listed in Hong Kong stock market, and is expected to bring 19,271 to 62,387 billion HK dollars. UBS will be appointed as its listing sponsors.

BYD said it is expected BYD electrons will issue 25% of share to raise money globally. 60% are new shares, 40% are old shares.

BYD will operate three major businesses: rechargeable batteries, motor vehicles and components.

Insiders pointed out that the BYD's car business growth drive this market listing. Last year, BYD auto business turnover increase 414%, reaching 3.232 billion yuan, successfully turned loss into profit and made a net profit of 116 million yuan.

Moreover, the funds rising from listing gives fully financial support in BYD auto business.

About 40% of the funds will be used to expand BYD's design and car manufacturing capacity; about 50% for bank loans, and the remaining 10% will be used for expansion of BYD rechargeable battery production capacity.