Lenovo Group Ltd (聯想), China's largest computer maker, raised US$600 million from its first syndicated loan with 20 banks to help it purchase IBM Corp's personal computer business.
The five-year credit was arranged by Industrial and Commercial Bank of China (Asia) Ltd, BNP Paribas SA, ABN Amro Holding NV and Standard Chartered Plc. Sixteen other banks from China, Hong Kong, Europe, the US and other countries in Asia joined in the past two months, lending US$345 million, the credit's arrangers said in a joint statement.
"It's a successful transaction because Lenovo is a good name and pricing for this loan is decent," Oscar Tang, vice president of BNP Paribas loan syndication in Hong Kong, said yesterday.
Beijing-based Lenovo earlier this month overcame national security concerns to win US government clearance for the US$1.25 billion purchase of IBM's PC unit, which will vault Lenovo to third from eighth among global PC makers.
The deal is due to be finalized by mid-year.
Lenovo, which is partially owned by the Chinese government, agreed last December to pay US$650 million in cash, US$600 million in stock and assume US$500 million of debt to buy the IBM unit, which lost money in the three-and-a-half years through June 30.
Lenovo yesterday refused comment on reports that several US private equity firms are close to buying stakes in the company worth a total US$350 million.
"Lenovo has no official comment to media on its overseas private fund raising," said Guo Tongyan, Lenovo's spokesman in Beijing.
Guo acknowledged, however, that Lenovo was more likely to seek to raise funds through sales of equity than through new share listings overseas. The company's shares already are traded on the Hong Kong Stock Exchange, he noted.
The Wall Street Journal reported on Wednesday that three private-equity firms -- Texas Pacific Group, General Atlantic LLC and the Newbridge Capital LLC affiliate of Texas Pacific and Blum Capital Partners -- are close to taking a stake in Lenovo. That report and others cited unnamed sources saying the firms planned to spend about US$350 million, with Texas Pacific providing the largest stake of US$200 million, General Atlantic investing US$100 million and Newbridge Capital US$50 million.
Texas Pacific was Lenovo's leading contender for the IBM unit.
There is widespread skepticism in China over Lenovo's ability to manage the huge acquisition. The state-run newspaper China Financial News said Texas Pacific might be able, through a strategic investment, to lend its expertise in restructuring the IBM assets.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion