Lenovo Group has announced plans to issue $2 billion worth of zero-coupon convertible bonds to Alat, a wholly-owned subsidiary of Saudi Arabia's Public Investment Fund (PIF). This move is part of a broader strategic cooperation framework agreement between Lenovo and Alat, aimed at establishing a regional headquarters in the Middle East and setting up a new manufacturing facility in Saudi Arabia. According to HKEX filings, the bonds, which will convert to approximately 12.1% of Lenovo's issued shares, are expected to raise significant capital for the Chinese PC maker. Notably, these bonds have a conversion threshold below Lenovo's current stock price and pay zero interest. Following the announcement, Lenovo's shares fell by 2.4% as of 10:15 a.m. today.
From Breakingviews - Saudi expands strategic toolbox with Lenovo deal https://t.co/2kqcfBhdSm https://t.co/kU7dIGbhy3
From Breakingviews - Breakingviews - Saudi expands strategic toolbox with Lenovo deal https://t.co/owlLDLJC6r https://t.co/owlLDLJC6r
Lenovo said it plans to issue $2 billion worth of zero-coupon convertible bonds to a Saudi Arabia fund https://t.co/HB5KTeYeuD via @filipepacheco @CharlotteYTYang
Lenovo plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom. https://t.co/LzsooVWW5P
Here's a weird one for @Breakingviews: Lenovo, of laptop fame, is selling a $2bn convertible bond with a conversion threshold *below* its current stock price. Also it pays zero interest! None of this makes any kind of sense… until you clock who's buying: https://t.co/YLlqjgb1jY
Lenovo Slips After Securing USD2 Billion Investment From Saudi Sovereign Wealth Fund @Lenovo https://t.co/QNzRdp1ArY
Lenovo plans to raise $2B by issuing convertible bonds to Alat, a subsidiary of Saudi Arabia's PIF, which would convert to ~12.1% of the company's issued shares (@byvenkat / Wall Street Journal) https://t.co/ShyhUBhXhq https://t.co/7moYYFvWb5
Shares of Lenovo [HKG: 0992] fell 2.4 percent as of 10.15 a.m. today after the Chinese PC maker said it inked a deal with Saudi Arabia’s Alat to establish a regional headquarter in the Middle East and a new manufacturing facility in Saudi Arabia. The firm will issue USD2 billion… https://t.co/1MBOcs0Yl8
Lenovo to Sell $2 Billion Convertible Bonds to Saudi State Fund https://t.co/KtDGvCInAP
Lenovo to Sell $2 Billion Convertible Bonds to Saudi State Fund https://t.co/K5OpIBQMYM
Lenovo to Sell $2 Billion Convertible Bonds to Saudi State Fund https://t.co/VY9v5rjWOr
Lenovo Group has signed a strategic cooperation framework agreement with Alat, a wholly-owned subsidiary of the Saudi sovereign wealth fund PIF. Under this agreement, #Lenovo will issue $2 billion zero-coupon convertible bonds to Alat, according to the HKEX filings. #China
Lenovo to Issue $2 Billion Convertible Bonds to Saudi Sovereign Wealth Fund https://t.co/0IgKUggu8o
Lenovo said it plans to issue $2 billion worth of zero-coupon convertible bonds to a Saudi Arabia fund, the latest Chinese company to seek capital through such an issuance within a matter of days https://t.co/RiIrt8f7t0