Lenovo has signed a Share Transfer Agreement with Xoceco and has taken over the remaining 19.2% of stake held by the latter in Lenovo Mobile, a joint venture between the two.
Lenovo spent CNY72 million cash on the deal which has now made it the sole shareholder of Lenovo Mobile.
Lenovo representatives told local media that the acquisition will help Lenovo better control its mobile phone service now that it has become one of the four major mobile phone makers in China.
Lenovo Mobile was set up in 2002 by Legend, which was renamed Lenovo in April 2003, and Xoceco with a total investment of CNY150 million, of which CNY90 million came from Legend and CNY60 million by Xoceco.
In 2002, Legend bought 16% of the company with CNY24 million.
The transfer will be completed by the end of this year, but the company management will not be changed.