Lenovo’s parent eyes HK list, says report

By : |May 31, 2010 0

HONG KONG, CHINA: Legend Holdings, parent of the world’s No.4 PC maker Lenovo Group, plans to seek a Hong Kong listing in the next five to seven years, the South China Morning Post reported on Monday, citing chairman Liu Chuan-zhi.

Legend, also a major shareholder of Digital China Holdings, aims a listing in the city in a bid to raise sufficient funds for its diversified businesses, the newspaper said. It also plans to list it property unit Raycom Real Estate in the mainland.

"Raycom will probably list on the mainland. After that, Legend Holdings will have an H-share listing in Hong Kong," Liu was quoted as saying. He gave no further details.

Legend also plans to invest 13 billion yuan ($1.90 billion) in energy, environment and chemical sectors and will subsequently list some of them after Legend’s H-share listing, Liu added.

Competing Hewlett-Packard, Taiwan’s Acer, and Dell, Lenovo is facing pressures from competition and volatile financial markets as it posted a quarterly profit that lagged forecasts, dragged down by shrinking margins in its return to its roots as an emerging markets specialist.

Lenovo shares were up 1.5 percent by 0244 GMT on Monday, and Digital China was up 0.5 percent, out-performining a 0.2 per cent rise in broader Hang Seng Index .HSI.

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