Unfazed by a forecast decline in information-technology sales in Japan this year, Lenovo Group and NEC yesterday launched a joint venture that has become the country's biggest personal computer supplier.
NEC Lenovo Japan Group, in which Lenovo has a 51 per cent stake, is estimated to account for about 25 per cent of annual personal computer sales in Japan, the industry's third-largest market.
Lenovo shares rose 4.49 per cent yesterday to finish at HK$4.65, its highest close since reaching HK$4.70 on March 9 this year, after it announced the new joint venture.
In a filing with the Hong Kong stock exchange yesterday, Lenovo chairman Liu Chuanzhi said the company last week completed its investment of US$175 million in the venture by issuing 281.129 million ordinary shares worth HK$4.85 each to partner NEC.
The transaction marked Lenovo's third-biggest expansion initiative since it acquired the global personal computer business of IBM for US$1.75 billion in 2005.
The mainland computer giant earlier this month reached an agreement to buy the controlling stake in Medion, a German personal computer and consumer electronics maker, for 466 million euros (HK$5.28 billion). This deal is expected to be completed in August.
