20 August, 2024 – Lenovo has announced the date of its general meeting for the shareholder vote in relation to Strategic Business Transactions which were first announced on May 29, 2024. The Strategic Business Transactions will help Lenovo accelerate its growth and transformation with the introduction of a long-term strategic partner in Alat, further diversify its global supply chain footprint, and drive greater financial flexibility. The Board puts forward ordinary resolutions including the issuance of a US$2 billion zero coupon convertible bond to Alat and the issuance of 1.15 billion warrants for shareholders to consider and vote at the general meeting. The general meeting will take place on September 12, 2024 at 9:30a.m. in Hong Kong.
As part of the Strategic Business Transactions Lenovo will:
- Establish a new regional HQ in Riyadh to focus on the growth opportunities in the Middle East and Africa (MEA) region.
- Drive incremental revenue and profit. The MEA region continues to see strong growth momentum fueled by an increasing number of large-cap projects and its strong economies.
- Further diversify its global manufacturing and supply chain by building a new manufacturing hub in the Kingdom of Saudi Arabia (KSA), enabling it to get closer to serving customers in the region.
- Introduce a new long-term strategic partner in Alat, a US$100 billion fund wholly owned by PIF (Public Investment Fund), the sovereign wealth fund of the Kingdom of Saudi Arabia.
- Introduce greater financial flexibility in the form of interest savings from refinancing debt and opportunities to invest for future expansion in the MEA region and globally.
Yuanqing Yang, Lenovo’s Chairman and CEO commented:
“Through this powerful strategic collaboration, 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 the MEA region. Looking ahead, Lenovo plans to build a tech & manufacturing hub in Saudi Arabia and will help define the future of the region as a center of innovation which Alat will benefit from. This is a huge vote of confidence in our company, our market leadership, and our future growth potential.”
More details can be read in the Lenovo Circular which was published on the Hong Kong Stock Exchange on August 19, 2024, in particular the reasons and benefits of the Strategic Business Transactions, the view of the Board of Directors, the recommendation from the Independent Board Committee and the process for shareholding voting.
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.
