Chinese personal computer maker Lenovo Group said that it is acquiring entire interest of Lenovo Mobile Communication Technology from a group of investors led by Hony Capital, the private equity arm of Legend Holdings, in a move to gear up its efforts in the mobile internet market in China.
Lenovo sold its mobile handheld business in 2008 to focus on its personal computer business segment. Consideration for the buy back of its mobile unit is approximately $200m in cash and shares. The transaction is conditional upon Lenovo independent shareholder approval.
Yang Yuanqing, CEO of Lenovo Group, said: “As Lenovo’s global PC business continues to make steady progress, we view mobile Internet as a key growth opportunity moving forward globally. Lenovo has prepared itself in this area.
Lenovo said that it aims to maximise the combined synergies of the two companies in product innovation, lean manufacturing, strong distribution channels and retail presence to strengthen its position in mobile handheld devices market in China.
Mr Yuanqing, added: “We have developed first class products with excellent hardware and operating systems integration. We will launch these innovative new products in China soon. With Lenovo’s brand, strong channel and excellent operation platform, we’re confident in our ability to execute our mobile internet strategy and make it our next growth engine after the China business.”