Warren Buffett-backed BYD saw its share price plunge by 11.93% to HK$270.20 on July 12 after 225 million BYD shares were transferred to Citibank on Monday. On July 11, Citi Bank’s position increased by 225 million shares to a total of 389 million shares, raising its ownership to 35.39%.
The transfer of 225 million shares to Citibank has generated speculation given that the value is exactly the same as Berkshire Hathaway was holding in the last filing.
On Tuesday, BYD‘s Securities Affairs department commented, “The data we are seeing now is that Buffett’s holdings have not changed at present. Its shareholding ratio is very large, and if it involves changes in shares, it will definitely be disclosed. ”
On Wednesday, BYD shares continue to decline in the Hong Kong session and are now trading around HK$267, 13% less than before Citi Bank’s increased position.
Warren Buffett bought 225 million shares of the automaker in 2008 at a price of HK$8 per share and is currently BYD’s fourth-largest shareholder via Western Capital LLC, which is 100% controlled by Berkshire Hathaway.