Published September 29, 2008

Buffett unit buys 10% of HK firm

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(NEW YORK/HONG KONG) MidAmerican Energy Holdings Co, a unit of US billionaire investor Warren Buffett's Berkshire Hathaway Inc, said it would pay US$230 million for a 10 per cent stake in Chinese rechargeable battery firm BYD Co Ltd to support its 'green' technologies.

The deal gives MidAmerican a foothold in the Hong Kong-listed company which is developing electric-hybrid cars it expects to start selling in China later this year and Europe by 2010.

'Mr Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him,' Mr Buffett, the chairman and chief executive of Berkshire said in a statement, referring to the chairman of BYD. David Sokol, chairman of MidAmerican, said the technologies being developed by BYD will be an integral part of the future for the care of the environment especially relating to global climate change.

Shares in BYD closed on Friday at HK$8.40, valuing the stake of 225 million shares at HK$1.890 billion (S$347.4 million) at its last traded price.

'The news is positive as the investment is big,' Frederick Wong, analyst at BNP Paribas in Hong Kong said. Mr Wong pointed out that BYD's capital expenditure had been high in the past one to two years and needed funding for development. '(The investment) will help the company's fundamentals,' he added. -- Reuters