Thursday, March 31, 2005
China's Lenovo Group Ltd., which is in the process of taking over IBM Corp.'s PC business, on Wednesday (March 30) announced that it has obtained a $350 million investment from three equity firms: Texas Pacific Group, General Atlantic LLC, and Newbridge Capital LLC.
Upon closing of the acquisition of IBM's PC business, the three firms will own approximately 10.2 percent of Lenovo's enlarged issued share capital. Assuming full exercise of the warrants, the investors will own approximately 12.4 percent.
Among the total amount to be raised from this placement, approximately $150 million will be used to finance the acquisition of IBM's PC unit. The balance will be added to Lenovo's general working capital and used for general corporate purposes.
This strategic transaction provides an alternative funding means to Lenovo, said Yuanqing Yang, current president, chief executive and chairman designate of Lenovo. "With rich experience helping companies integrate operations, their participation in the new Lenovo will further ensure a smooth transition period and stable development in the future," he said in a statement.
Late last year, IBM confirmed that its has sold its personal computer business to Chinese group Lenovo, in a complex deal valued at $1.75 billion and which, importantly, gives the company rights to use the IBM Think brand.
By: DocMemory
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