Lenovo to become a more fleet-footed technology company

The mainland's technology giant Lenovo is riding a big wave of positive momentum into its new restructuring plan that will see the company further expand beyond its core personal computer business.

Lenovo, the world's largest supplier of personal computers, announced late on Tuesday a sweeping reorganisation that would enable the integration of International Business Machines' low-end server business, which the company agreed to buy for US$2.3 billion in cash and shares.

Chairman and chief executive Yang Yuanqing said in a statement that the company was in "one of the most important and exciting phases" in its history after attaining strong market position in personal computers, smartphones and media tablets, as well as making its biggest-ever acquisition with the IBM deal.

"Given that momentum, now is the perfect time to prepare for the next phase in our growth. To do this, it is necessary to build new businesses and new pillars for our company," Yang said.

Investors yesterday cheered Lenovo's restructuring initiative. The stock rose 4.58 per cent to finish at HK$10.96, its highest close since reaching HK$11.18 on April 7, 2000.

Alberto Moel, a senior analyst at Bernstein Research, said the IBM deal, pending regulatory approval, "could be highly accretive to shareholders, given minimum share dilution".