Lenovo Group Announces Strategic Cooperation with Alat
TapTechNews May 29th news, Lenovo Group today announced the release of an announcement, declaring that after the trading session on May 28, 2024, it signed a strategic cooperation framework agreement with Alat (a wholly-owned subsidiary of the PublicInvestmentFund, the sovereign wealth fund of the Kingdom of Saudi Arabia).
In addition to the strategic cooperation framework agreement, Lenovo also signed a bond subscription agreement with Alat, planning to issue a US$2 billion (TapTechNews note: currently approximately 14.5 billion RMB) zero-coupon convertible bond to Alat, and the net proceeds will be used to repay the company's existing debts and supplement working capital and general corporate purposes.
Furthermore, Lenovo Group also announced that after the trading session on May 28, 2024, the board of directors has approved the proposed issuance of warrants to issue 1.15 billion warrants at an issue price of HK$1.43 per warrant.
The convertible bond is interest-free and will expire three years after issuance (can be extended for three months according to the terms and conditions), and can be converted into shares at maturity according to the terms and conditions.
Lenovo Group expects that the strategic cooperation will enable the company to accelerate its ongoing global strategic transformation, enhance its global influence, improve the diversity of production layout, and fully utilize the huge future growth potential of the information industry and business service industry in the Middle East and Africa (MEA) region.
Lenovo stated that through the strategic cooperation with Alat, the company expects to have greater financial flexibility to implement its effective strategy and further promote its transformation into a solution and service provider.
According to the strategic cooperation, Lenovo will establish the MEA regional headquarters and new production facilities in the Kingdom of Saudi Arabia, and Alat will provide support and assistance to the company to ensure the smooth implementation of the strategic cooperation. This production facility will expand Lenovo's existing global business and production layout (currently has more than 30 manufacturing bases worldwide).