Business, Computing

Lenovo To Buy Additional Medion Stake For EUR115 Million

Lenovo Group's wholly-owned subsidiary Lenovo Germany will buy all 8.874 million option shares of Medion AG at the price of EUR13 per share from Gerd Brachmann, a major Medion shareholder.

On the completion of the deal, Lenovo Group's stake in Medion AG will increase from 61.49% to 79.81%.

The option share purchase will involve EUR115 million, which is about HKD1.163 billion. The payment will be realized by 35,864,146 Lenovo Germany shares and EUR92.29 million in cash. The payment plan is adjustable.

Under the agreement signed by the two parties, the consideration shares, when issued to Brachmann, will be subject to a maximum lock-up period of 60 months as of the sale and purchase agreement closing date, i.e. July 29, 2011, and subsequently after each 12 months of the sale and purchase agreement closing date, one-fifth of the consideration shares will be released from such lock-up restrictions.

On June 1, 2011, Lenovo Group announced plans to acquire 36.66% shares of the German PC company Medion AG at the price of EUR13 per share, totaling EUR231 million. With that deal, Lenovo's market share in Germany is expected to be doubled, making it the third largest PC maker in Germany.

Medion AG is a company engaged in the fields of personal computing, multimedia products, mobile communication services, and consumer electronics. It operates in Europe, the United States, and the Asia-Pacific region. Over the past three years, its annual revenue was USD2.145 billion, USD1.97 billion, andUSD2.29 billion, respectively.

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