Warren Buffett-backed Chinese electric vehicle and battery maker BYD Co (OTC:BYDDY) on Wednesday said it is adjusting the buyback price for shares traded on China's A-share market, CnEVpost reported, citing the company.
What Happened: Shenzhen-based BYD said it is adjusting the upper limit of its buyback price to no more than RMB 400 ($60) per share from no more than RMB 300 per share.
BYD had on April 22 said it would buy back shares worth between RMB 1.8 billion ($270 million) and RMB 1.85 billion ($277.5 million) at a price not exceeding RMB 300 per share.
BYD’s Shenzhen-traded shares have climbed 40% in the past month.
Why It Matters: BYD has previously said it plans to use the buyback funds for the employee stock ownership plan, and the unused portion will be canceled, and the registered capital reduced.
BYD made its first buyback, buying 1,452,100 of its shares traded on China's A-share market in a centralized bidding transaction.
See Also: Warren Buffett-Backed EV Maker To Soon Supply Batteries To Tesla: Report
The development comes at a time when BYD is reportedly preparing to begin supplying batteries to Tesla Inc (NASDAQ:TSLA).
BYD has also reportedly sought the acquisition of six lithium mines in Africa, a move that could meet the demand for 27.78 million vehicles with 60-kWh batteries.
Price Action: BYDDY otc shares closed 1.8% higher at $77.8 on Wednesday.
Photo: Courtesy of BYD
