IBM sells part of its stake in Lenovo
IBM sold off a chunk of its stake in Lenovo Group, leading the world’s third-largest PC vendor to temporarily suspend trading of its shares in Hong Kong on Tuesday. Reports have shown that IBM has sold 300 million shares in Lenovo Group in a sale worth HK$960 million (US$123 million).
Prior to the reported sale, IBM held a 13.2 percent stake in Lenovo, making it the company’s second-largest shareholder. The sale of shares — estimated at 3.5 percent of Lenovo’s total shares — will reduce IBM’s holdings to 9.7 percent of the company. While IBM reduces its stake in Lenovo, the two companies remain close partners. Lenovo Tuesday announced the signing of a five-year agreement for IBM to provide technical support, installation, deployment and other PC-related services to its customers. The deal could be worth up to US$245 million to IBM, Lenovo said in a filing to the Hong Kong stock exchange.
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