Google seeks to raise up to $221 million by selling Lenovo stock
Google is offering 371 million Lenovo shares in the range of HK$4.56 to HK$4.62 per share.
Google Inc is seeking to raise between US$218 million and US$221 million by selling shares in Chinese personal computer maker Lenovo, according to a deal term sheet seen by the International Financing Review on Wednesday.
Google is offering 371 million Lenovo shares in the range of HK$4.56 to HK$4.62 per share, a discount of up to 4 per cent to the last traded price, the terms showed.
Morgan Stanley is sole bookrunner.
Representatives of Google and Lenovo were not available for immediate comment.
Lenovo recorded a net loss of US$128 million for the financial year ended March 31, compared with a net profit of US$829 million a year earlier, according to its filing to the Hong Kong bourse on May 26.
It was the first time the world’s largest personal computer maker recorded a net loss in the past six years.
Lenovo’s total sales slid 3 per cent year-on-year to US$45.91 billion amid currency fluctuations and a slower demand for computers.
Its smart phone business remained difficult because its acquisition of Motorola Mobility in October 2014 did not help push up sales.
Yang Yuanqing, chairman and chief executive officer of the company, said he had underestimated the difficulties of integrating Motorola’s business with Lenovo, and he has declined his bonus for the year.
Shares of Lenovo have tumbled over 60 per cent since June 2015.