Lenovo raises $350m for IBM PC takeover
Print storyTurns to US private equity
Posted in IT Channel, 31st March 2005 07:24 GMT
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Lenovo has turned to three US private equity funds to back the takeover of IBM’s PC business. China’s biggest PC maker has raised $350m, of which $150m will go towards the acquisition. Working capital will swallow the rest of the money.
Lenovo's breadheads are Texas Pacific Group ($200m), General Atlantic ($100m) and Newbridge Capital ($50m), which will hold 12.4 per cent of the enlarged company, assuming conversion of preference shares and warrants into common stock.
Lenovo must pay IBM $800m cash and shares worth $450m to close the acquisition, following which IBM will hold 13.4 per cent of the company, also assuming full conversion of preference shares. IBM will continue to supply leasing, financing, warranty and maintenance services to Lenovo. ®
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