Samsung Electronics has just sold its 1.6 percent stake in China’s BYD, which is worth around 1.5 trillion Won (roughly 1.3 billion US Dollars). The move arrives as a surprise considering how many consumer electronic brands are racing to develop electric and self driving cars.
According to a KedGlobal report, the South Korean tech giant has stated that its remaining stake at the Chinese automobile maker is now at 0.3 percent as of the end of the first quarter. In other words, it previously held a total 1.9 percent stake that was worth 1.7 trillion won at the time. The world’s largest smartphone brand had bought the stake back in 2016 as an effort to strengthen its bond with the Chinese electric car and battery manufacturer.
Furthermore, it was also to boost its automotive chip business as well. Although, the company selling its stake has puzzled many since various tech giants are moving towards next generation vehicles. So selling its stake at an established automobile brand would seem like a step in the opposite direction. As per some, the company decided to sell the BYD share to make profit as BYD’s shares have risen significantly in the past few years.
Although other stated that Samsung doesn’t have any major reason to sell off its BYD stake since the company already has a sizeable cash reserve of its own that amounts to around 100 billion US Dollars. On the other hand, the firm is also currently aiming on investing 17 billion US Dollars to build a new chip plant close to its existing factory in Austin, Texas.
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