Lenovo's parent Co to invest $1.5 bn over 5 yrs

BEIJING, CHINA: Legend Holdings, the parent of Lenovo, the world's No. 4 PC maker, said on Tuesday it would invest 10 billion yuan ($1.5 billion) over the next five years, focusing on five areas including clean energy.

The group said it was building out its core assets in the five sectors, including clean energy and environmental protection, new materials, high tech, financial services and consumer goods, it said in a statement.

The investment plans come after China Oceanwide Holdings Group, a private investment firm, said last week it had bought 29 per cent of Legend Holdings for $404 million.

China Oceanwide bought the stake from the asset management unit of the Chinese Academy of Sciences, lowering the academy's stake from the previous 65 percent.

Liu Chuanzhi, the chairman of Lenovo who was also appointed to the same position at Legend, replacing Zeng Maochao, said Legend's shareholding structure will continue to change.

The Chinese Academy of Sciences plans to reduce its stake in Legend gradually to under 35 per cent by 2010, falling below the stake belonging to a Legend employee group, which would then become the largest Legend shareholder.