IBM selling $80 mln of Lenovo shares: term sheet
US computer giant IBM shed more of its stake in top Chinese PC maker Lenovo Group Ltd, offloading up to $80 million worth of stock at a 3.9% to 7% discount to its latest closing price.
International Business Machines Corp (IBM) is selling 116.19 million shares in Lenovo, or a roughly 1.3% stake, at HK$5.19 to HK$5.36 per share, in a deal handled by Citigroup, a related document said.
After the share sale, IBM's holdings in Lenovo would drop to 4.7%, which falls below public disclosure requirements, from 5.96%, the document said.
IBM acquired its stake in Lenovo at HK$2.675 a share in 2005, when the Chinese firm bought IBM's ailing PC arm for $1.25 billion, and has been selling it off in chunks as lock-up periods have lapsed.
In April, IBM sold $83.6 million worth of Lenovo shares at HK$5.61 each.
Lenovo's shares closed up 2.39% at HK$5.58 on Monday, lagging a 3% gain in Hong Kong's benchmark Hang Seng Index. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.