- Collaboration to accelerate Lenovo’s ongoing transformation, further enhance global presence, and increase geographic diversification of global manufacturing footprint
- Partnership will capture tremendous growth opportunities in Middle East and Africa (MEA) region and support Saudi 2030 vision
Hong Kong – 8 January, 2025 – The global technology powerhouse Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) and Alat, a PIF company, have announced the completion of the US$2 billion investment (via three-year zero-coupon convertible bonds) alongside reaching the strategic collaboration agreements that were initially announced in May 2024. The deal has received shareholders’ approval and all regulatory approvals required for completion.
The strategic collaboration and investment will enable Lenovo to further accelerate its ongoing transformation, enhance its global presence, and increase geographic diversification of its manufacturing footprint. Additionally, Lenovo will build on its current MEA business and capture the significant growth opportunities in the MEA region, bring its world class supply chain, technology, and manufacturing capabilities to Saudi Arabia, and support the creation of 1,000s of new jobs.
Following the completion, Lenovo will establish a regional Middle East and Africa headquarters (RHQ) in Riyadh, Kingdom of Saudi Arabia (KSA), and a sustainable manufacturing facility in the Kingdom to serve customers in the region and beyond. The factory will manufacture millions of PCs and servers every year using local research and development (R&D) teams for fully end-to-end ‘Saudi Made’ products and is expected to begin production by 2026. The factory will join Lenovo’s extensive footprint of 30+ manufacturing sites around the world, spanning Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the USA.
Additionally, Alat and Lenovo have entered a business development partnership which will leverage Alat’s extensive relationships in the region and local market insight. The RHQ will also invest in flagship retail space in the Kingdom and expand investments in R&D as well as marketing and strategic partnerships in both KSA and the MEA region.
Yuanqing Yang, Chairman and CEO of Lenovo, said: “Through this powerful strategic collaboration and investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in KSA and the wider MEA region. We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain, technology, and manufacturing capabilities will be a benefit to KSA as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation.”
Amit Midha, CEO at Alat, said: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company. With the establishment of a regional headquarters in Riyadh and a world class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region.”
At the time the strategic collaboration and investment with Alat were announced in May 2024, Lenovo also announced its proposed three-year 1.15 billion Warrants Issuance to raise additional funds to support future growth and broaden its capital base. The Warrants have been fully subscribed, including 43% subscribed by Lenovo leadership, demonstrating confidence in Lenovo’s ongoing transformation, global market leadership, and growth momentum.
In relation to this transaction, Citi and Cleary Gottlieb Steen & Hamilton (Hong Kong) advised Lenovo, and Morgan Stanley and Latham & Watkins advised Alat.
Lenovo is a US$57 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.
About Alat
Alat is a company focused on transforming global industries (electronics and industrials) and creating a world class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy to build a better tomorrow. Alat will deliver sustainable manufacturing to help global companies reduce their emissions and move towards carbon zero manufacturing. Alat, a PIF company, is an essential enabler of the Vision 2030 goals for economic diversification, industrial development, innovation, and job creation.
Alat´s primary goal is to ensure that global companies set up sustainable manufacturing solutions in the Kingdom of Saudi Arabia, benefitting from abundant green energy resources, the country´s unique geolocation and its investments in technology. Alat is partnering with best in-class companies from around the globe, in its key strategic business areas of semiconductors, smart devices, smart buildings, smart appliances, smart health, advanced industrials, next gen infrastructure, electrification & AI infrastructure. For more information visit www.alat.com ©Alat, Tomorrow Made Better.
