Lenovo 0992

[winston]

not vested

NEC said to place 280M shr in LENOVO GROUP (00992.HK) at 1.8%-4.8% discount to cash in up to 1.83B

NEC Corporation is said to place 281 million old shares in LENOVO GROUP (00992.HK) at $6.3-$6.5 per share, representing discount of 1.8%-4.8% against today's closing price $6.62, to cash in up to $1.83 billion.


Source: AAStocks Financial News

[winston]

not vested

DJ China's Lenovo Said to Be Buying Brazil's CCE - Report


SAO PAULO--China's Lenovo Group Ltd. (0992.HK, LNVGY) is buying Brazil's electronic goods manufacturer CCE, according to Brazilian Exame magazine.

Lenovo has called a press conference in Sao Paulo on Wednesday with Chairman Yang Yuanqing for what it has said will be "the biggest announcement in the company's history in Brazil."

Lenovo and CCE press officers declined to comment on the report.

CCE says it is one of the largest manufacturers of electronics goods in Brazil with revenue of 1.6 billion Brazilian reais ($783 million) in 2011.


Source: Dow Jones & Company, Inc.

[winston]

vested again

LENOVO GROUP (00992.HK) falls due to shrs placement, can stabilize in near term - Kit Wong

LENOVO GROUP (00992.HK) dropped nearly 7% today. Kit Wong, Senior Research Analyst of Athena Best Financial Group, said the fall was mainly attributable to NEC's move to place shares for cashing in $1.8 billion.

Rumor has it that LENOVO GROUP is interested in acquiring Brazilian electronic product producer CCE, said Wong, who however added investors wish LENOVO GROUP to focus on smartphones and tablets in the future and thus the acquisition would not bring too much positive effects to the overall business.

It is alleged that LENOVO GROUP intends to help its Brazilian branch make a turnaround with the acquisition.

Nevertheless, Wong said the task would not be an easy one.

Investors are awaiting further development as there is no concrete plan for the possible acquisition yet.

Wong deems stock price of LENOVO GROUP can stabilize after one to two days with trend depending on actual conditions.


Source: AAStocks Financial News

[winston]

vested

China's Lenovo to buy Brazilian electronics company CCE

SAO PAULO/HONG KONG (Reuters) - China's Lenovo Group Ltd agreed on Wednesday to buy Brazilian electronics maker CCE, as the world's No. 2 PC maker by sales bets that Brazil's promising consumer market can help revive its slowing profit growth.

The deal, announced in a securities filing, is valued at a base price of 300 million reais ($148 million), subject to adjustments.

Payment, in a mix of stock and cash, could include an additional 400 million reais, depending on performance-based indicators over the four years ending in December 2016.

"Brazil has a positive growth rate (for PCs) even in the current relatively volatile environment," Lenovo chief financial officer Waiming Wong told Reuters in an interview. "If we really go for the high growth market, the big market, Brazil is obviously the candidate."

Lenovo's purchase of CCE, Brazil's largest domestic manufacturer of electronics such as PCs, DVD players and stereos, will allow the Chinese company to nearly double its share of the PC market in the world's sixth-largest economy.

The deal will also add mobile phones and televisions to Lenovo's product line in Brazil, where it recently announced plans to build a $30 million factory, helping it expand beyond its current focus on the corporate sector.

"In order to win in Brazil long term you have to have local manufacturing," Wong said, adding that the acquisition would boost Lenovo into third place in Brazil's PC market from 7th place currently. "When CCE came along, it definitely was a good fit."

The deal highlights the growing, yet uneven trade ties between Brazil and China, two large emerging economies. While Brazil benefited over the past decade from China's voracious demand for raw materials such as iron ore and soybeans, Chinese exports of manufactured products have hurt Brazilian industry.

The acquisition, which Lenovo expects to close in the first quarter of 2013, also comes at a time when Brazil's once-booming economy has lost steam.

Lenovo values the Brazilian market for PCs, smartphones, tablets and SmartTVs at $124 billion.

CCE, controlled by privately held Digibras, runs seven factories in Brazil and posted 1.6 billion reais ($788 million) in revenue in 2011. The company said it produced 774,000 PCs last year and expects to assemble 887,000 in 2012.

http://www.reuters.com/article/2012/09/ ... nologyNews

[winston]

vested

DJ MARKET TALK: Lenovo May Stabilize;CCE Deal Strategically Positive

0734 [Dow Jones] Lenovo (0992.HK) may stabilize after faltering 7.6% to end Wednesday at HK$6.12, after NEC (6701.TO) sold its entire 2.7% stake at HK$6.35 a share.

News that Lenovo will buy CCE, a group of three Brazilian consumer-electronics makers, for $147 million in cash and stock is likely to be taken as positive strategically, as the deal will beef up Lenovo's presence in Brazil, one of the world's top five PC markets, but execution risk can't be ignored.

Morgan Stanley expects Brazil's PC shipments will grow much higher than the global market from 2012-2016 at 10%-plus, with the strength mainly coming from a low PC penetration rate in Brazil, which is about 40% in 2012, vs developed countries' average of 85%.


Source: Dow Jones & Company, Inc.

[winston]

vested

DJ MARKET TALK: Lenovo +2.0% Pre-Market; CCE Buy Positive - UOB-KH

0928 [Dow Jones] While execution is always a risk when it comes to overseas acquisition, Lenovo's track record may give investors some assurance.

UOB KayHian analyst Mark Po says given Lenovo's track record of acquisitions (IBM, Medion and NEC), its buy of Brazil's CCE "is positive given limited dilution effect."

It says that after the acquisition, Lenovo will increase its share in Brazil's PC market and become the no. 4 player (up from the current no. 7), just behind Positiva, Samsung and Acer.

UOB adds, the 13.3X FY11 P/E acquisition multiple is at a premium to global leaders like Dell and HP, but "bear in mind that Brazilian PC market is one of the fast-growing PC market and Lenovo took over 100% of acquisition target."


Source: Dow Jones & Company, Inc.

[winston]

not vested anymore

LENOVO GROUP (00992.HK) reiterated OW by HSBC on acquisition instrumental to widen distribution channel

LENOVO GROUP (00992.HK)'s acquisition of CCE can help widen the distribution channel for both computers and smartphones, said HSBC. Management of LENOVO GROUP also deems the purchase can help cut costs.

LENOVO GROUP was reiterated Overweight with target set at $7.58.

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: CCE Buy Positive For Lenovo - Macquarie

1118 [Dow Jones] Macquarie believes the acquisition of Brazilian electronics maker CCE for US$147 million will benefit Lenovo (0992.HK) in the intermediate term; from lower production cost, improved distribution channel, and more favorable tax treatment.

The house keeps Lenovo at Outperform with a target price of HK$7.80, as it continues to believe Lenovo's shares are attractively valued.

Macquarie adds that its checks indicate a September quarter shipment target of rising 10% on-quarter remains on track.

Lenovo pulls back 2.0% to HK$6.35 after rallying 5.9% over the past two sessions.


Source: Dow Jones Newswire

[winston]

not vested

LENOVO GROUP (00992.HK) to benefit most from MOC's subsidy scheme for buyers of energy-saving computers - UBS

China's Ministry of Finance yesterday announced that it plans to provide subsidies to consumers of energy-saving computers, said UBS, who expects LENOVO GROUP (00992.HK) to benefit most from the policy on having 32% market share in China in the second quarter of 2012.

LENOVO GROUP was maintained Buy with target set at $7.75.


Source: AAStocks Financial News

[winston]

not vested

Lenovo tops HP as world's biggest PC maker

Chinese manufacturer Lenovo has overtaken US-based Hewlett-Packard as the largest global vendor of personal computers, according to a survey Wednesday highlighting a struggling PC market.

The survey by the research firm Gartner showed Lenovo took over the top vendor spot for the first time with 15.7 percent of the market in the third quarter of 2012, edging HP with 15.5 percent.

Gartner pointed out that Lenovo has used "aggressive" pricing, especially in the professional market and has boosted its market share across all regions even as PC sales weaken.

Gartner said worldwide PC shipments totaled 87.5 million units in the quarter, a sharp decline of 8.3 percent from a year ago, as many retailers and consumers held back for the new Windows 8 PCs due in late October.

http://www.newsmeat.com/news/meat.php?a ... &buid=3281