Lenovo Group (LNVGY) has signed an agreement with three private equity firms, Texas Pacific Group (TPG), General Atlantic LLC (GA) and Newbridge Capital LLC (Newbridge), to provide Lenovo with a US$350 million strategic investment for its acquisition of IBM's PC business.
Of the total amount to be raised from this placement, approximately US$150 million will be used to finance the acquisition. The balance of approximately US$200 million will be added to Lenovo's general working capital and used for general corporate purposes.
Per the agreement, Lenovo will issue to TPG, GA and Newbridge an aggregate 2,730,000 unlisted Series A cumulative convertible preferred shares at an issue price of HK$1,000 per share and unlisted warrants to subscribe for 237,417,474 shares for a total of US$350 million cash consideration.
TPG is investing US$200 million, GA US$100 million and Newbridge US$50 million.