Chinese automaker BYD said on Monday its electronics unit has struck a deal with US-based manufacturer Jabil to buy its mobile electronics manufacturing business in China for 15.8 billion yuan .
Shares in BYD Electronic initially fell as much as 9 per cent in Hong Kong on Monday but reversed their losses and were up 0.5 per cent by the afternoon, while the broader market rose 1.5 per cent. The Hong Kong-listed stock of its parent BYD was up 0.9 per cent. "For BYD, I think it’s a reminder that they do more than just dominate in EVs," said Tu Le, founder of consultancy Sino Auto Insights, adding that they were higher up in the mobile supply chain and were a supplier to Apple.
If the deal was completed, the definitive agreement would enable Jabil to"enhance our shareholder-centric capital framework, including incremental share buybacks", Chief Executive Kenny Wilson said in a statement.