Lenovo in Strategic Collaboration and $2 Billion Bond Issuance

Cleary Gottlieb is representing Lenovo Group Limited (Lenovo) in its strategic collaboration with Alat in the Middle East and Africa region and its proposed issuance of $2 billion zero coupon convertible bonds to Alat.

The transaction was announced on May 29, 2024. Lenovo signed a strategic collaboration framework agreement and a bond subscription agreement with Alat, a subsidiary of the Public Investment Fund (PIF), which is the sovereign wealth fund of the Kingdom of Saudi Arabia.

The strategic collaboration, alongside a $2 billion investment in zero coupon convertible bonds, provides Lenovo with greater financial flexibility to implement its proven strategy, and will further drive its global transformation into a solutions and services-led business. The strategic collaboration includes a planned establishment of a regional MEA headquarters in Riyadh, Kingdom of Saudi Arabia (KSA), and a new PC and server manufacturing facility in the KSA to serve the region.

Lenovo is a global technology powerhouse, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong (HKSE: 0992). The principal business of Lenovo is the research and development, manufacturing and sales of smart devices, smart infrastructure and smart software, solutions, and services.

Alat, a wholly owned subsidiary of the PIF, is headquartered in Riyadh, the Kingdom of Saudi Arabia. Alat has been established to create a global business in electronics and advanced industrials and mandated to create world class manufacturing enabled by global innovation and technology leadership. With an investment budget of $100 billion, Alat is partnering with technology leaders across the world to transform industries while establishing world class businesses in the Kingdom of Saudi Arabia, powered by clean energy.

For more information, please see the press release here.