Samsung Electronics announced that it sold 1.6% of the shares of the Chinese company BYD for approximately $ 1.3 billion. The move came as a surprise given that many smartphone and home appliance manufacturers have been developing electric and self-driving cars lately.
Selling a stake in a well-known car company can be a step in the opposite direction. According to some experts, the company decided to sell the BYD stake in order to make a profit, as BYD shares have risen significantly over the past few years.
The South Korean tech giant said its remaining stake in the Chinese company BYD was 0.3% at the end of the first quarter. The world’s largest smartphone brand bought the stake back in 2016 to strengthen its ties with a Chinese electric vehicle and battery maker.
At the same time, there was no serious reason for Samsung to sell its stake in BYD, since the company already has a significant cash reserve, which is about $ 100 billion. On the other hand, the company currently intends to invest $ 17 billion in the construction of a new chip manufacturing plant next to the existing plant in Austin, Texas.