NEC may sell Lenovo stake for $235M

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.