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COPYRIGHT 2005 Asia Pulse Pty Ltd
(Edited text of a statement. Full text can be found at www.aisnetnews.net)
HONG KONG, March 31 Xinhua-PRNewswire-AsiaNet - The Lenovo Group Limited ("Lenovo") (HKSE: 992; ADR: LNVGY) today announced an agreement with three of the world's leading private equity firms, Texas Pacific Group ("TPG"), General Atlantic LLC ("GA") and Newbridge Capital LLC ("Newbridge"), to provide Lenovo with a US$350 million strategic investment for its acquisition of IBM's PC business.
Among the total amount to be raised from this placement, approximately US$150 million will be used to finance the acquisition.
The balance (approximately US$200 million) will be added to Lenovo's general working capital and used for general corporate purposes.
This strategic transaction provides an alternative funding means to Lenovo. More importantly, Lenovo will benefit from TPG, GA and Newbridge's recognized expertise in helping technology companies successfully implement their long-term strategies.
Per the agreement, Lenovo will issue to TPG, GA and Newbridge an aggregate 2,730,000 unlisted Series A cumulative convertible preferred shares ("Preferred Shares") at an issue price of HK$1,000 per share and unlisted warrants to subscribe for 237,417,474 shares for a total of US$350 million cash consideration. TPG is investing US$200 million, GA US$100 million and Newbridge US$50 million.
The Preferred Shares bear a fixed cumulative preferential cash dividend,...
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