BYD offers $400m in new shares; proceeds to help expand car output

BYD Co, the Chinese automaker partially owned by Warren Buffett's Berkshire Hathaway Inc, is offering $400 million in new stock, according to a term sheet obtained by Bloomberg News.

The Hong Kong-listed shares are being offered at HK$35 ($4.50) to HK$37 each, according to the document. That's as much as 15 percent below the last trading price for BYD, whose stock was halted from trading in Hong Kong and Shenzhen Friday pending an announcement.

The funds would give Shenzhen-based BYD room to step up investments and bolster production of electric vehicles as governments worldwide step up efforts to fight pollution. Selling shares would also help alleviate the strain on a balance sheet saddled with surging debt.