Lenovo raises US$500m from parent Legend and senior management
906 million new shares issued to joint venture created by Legend and senior management, including chairman Yang Yuanqing
Lenovo Group, the world’s second largest personal computer supplier, is raising a total of HK$3.9 billion (US$499.26 million) by issuing 906 million new shares to a joint venture created by its parent company, Legend Holdings and senior management, including chairman Yang Yuanqing.
Lenovo Group shares jumped 1.4 per cent to HK$4.37 on Tuesday morning, as Hong Kong market reopened following a three-day holiday weekend.
The investment will allow the company to strengthen its working capital position and provide it with the financial flexibility to achieve its strategic objectives to enhance, expand and establish its leading position in the industry, it said in the filing.
Union Star Limited, a joint venture owned by Legion Elite and SHL, will subscribe to 906,136,890 new shares issued by Lenovo for HK$4.31 per share, collecting about HK$3.9 billion, according to an exchange filing over the next week.
These shares will account for 7.54 per cent of Lenovo’s enlarged share capital.
In the meantime, Union Star will subscribe to 90,613,689 units of bonus warrants on the basis of one unit of subscription right for every 10 new shares issued by Lenovo. The initial exercise price for the warrant is HK$5.17. By the end of last week, Union Star had been 49.5 per cent and 50.5 per cent owned, respectively, by Legion Elite and SHL.