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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)