NEC may sell Lenovo stake for $235M

Summary:Japanese tech giant reportedly planning to offload its entire stake in Chinese PC maker Lenovo, while the latter also waived a restriction prohibiting NEC from selling the shares.

Japanese tech company NEC is reportedly planning to sell off its entire stake in Lenovo for US$235 million.

Citing a term sheet it had seen, Dow Jones Newswires reported on Tuesday that NEC was looking to sell 281.1 million shares it currently owns for between HK$6.30 (US$0.81) to HK$6.50 (US$0.83) per share.

Based on Lenovo's closing price of HK$6.62 (US$0.85) on Tuesday, this meant NEC would be selling its shares at a discount ranging from 1.8 percent to 4.8 percent, it added.

According to the term sheet, Credit Suisse is the sole bookrunner on the deal.

In a separate Reuters report Tuesday, an unnamed source with direct knowledge of the matter said the move was due to NEC being cash-strapped and added that the company would still maintain its joint venture with Lenovo in Japan.

The Chinese PC maker also waived a restriction prohibiting NEC from selling the shares it owns, according to a statement at the Hong Kong Stock Exchange, Bloomberg reported.

The statement explained Lenovo issued the shares to NEC in exchange for a 51 percent stake in a joint venture between the two companies, and that NEC was restricted from selling these shares until two years after the deal closed on Jul. 1 last year.

Topics: Tech Industry, Hardware, Lenovo

About

Jamie Yap covers the compelling and sometimes convoluted cross-section of IT and homo sapiens, which really refers to technology careers, startups, Internet, social media, mobile tech, and privacy stickles. She has interviewed suit-wearing C-level executives from major corporations as well as jeans-wearing entrepreneurs of startups. Prior... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.