Aug. 28 (Reuters) – Electric vehicle maker BYD Co Ltd 002594.sz The company said on Monday that its unit has entered into an agreement with the Singapore division of US-based Jabil Manufacturing to buy its mobility business in China for 15.8 billion yuan ($2.17 billion).
The transaction will expand BYD Electronic (International) (BE)’s customer base, product portfolio and smartphone component business, and fuel its growth as it looks to capture potential growth in the segment.
BYD shares listed in Hong Kong 1211. Hong Kong Shares in Shanghai rose 2.5% to 229.2 HK dollars, while shares in Shanghai rose 3.1% to 239.8 yuan by 0328 GMT. Shares of Gabel Inc. on the New York Stock Exchange ended slightly lower overnight.
Jabil Circuit (Singapore), which makes printed circuit boards, set up a unit this month with a product manufacturing business in Chengdu and Wuxi, which will now be sold to the Chinese electric vehicle maker.
“While improving BE’s market share of products, the acquisition will effectively synergize with BE’s existing products, enhance overall competitiveness, and ensure long-term sustainable development,” BYD said in an exchange filing, without disclosing any further details about the acquisition.
Jbeil in A statement Chief Executive Kenny Wilson said that if the deal goes through, the final agreement will enable it to “enhance its shareholder-focused capital framework, including additional share buybacks”.
Wilson added that the deal would allow Jubail to continue investing in “electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end markets.”
($1 = 7.2890 CNY)
(Reporting by Samir Manikar in Bengaluru; Reporting by Mohamed for The Arabic Bulletin) Editing by Muralikumar Anantharaman, Rashmi Aish and Sherry Jacob-Phillips
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