Chinese government sells Lenovo parent stake

The deal places more control of Lenovo's parent in the hands of private investors

A privately owned Chinese group will buy a stake in Lenovo's parent company being sold by a Chinese government academy, the companies said Friday.

China Oceanwide Holdings Group will buy the 29 percent share in Legend Holdings, Lenovo's parent company, for 2.76 billion yuan ($US404 million), a Legend spokeswoman said Friday. A China Oceanwide representative confirmed the deal.

The deal places more control of Lenovo's parent in the hands of private investors, which could influence its business strategy.

The stake is being sold by the Chinese Academy of Sciences, a state-run institution that conducts national research projects. China Oceanwide was the only buyer who met the conditions set in the academy's sale notice, the Legend spokeswoman said. The academy required that the buyer agree not to resell its stake, alter Legend's strategy or propose changes to the company's management for five years. The academy will retain a 36 percent stake in Legend, leaving it the company's largest investor.

China Oceanwide controls companies in industries including real estate, banking and energy.

Legend and China Oceanwide said details of the deal and Legend's new strategy would be available at a briefing next Tuesday. Lenovo declined to comment.

Lenovo, the world's fourth-largest PC maker, began restructuring early this year to refocus on its business in China and other emerging markets. The global economic recession dealt a heavy blow to the company's operations in developed markets. The company has posted net losses for the last three quarters.

Tags ChinaLenovo

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Owen Fletcher

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?