The company will buy an 80% stake in Digital Era Enterprises<\/a> and a 20% stake in PCCW Network Services<\/a>, a holding company for a unit that provides technology solutions to government entities in Hong Kong.
\"The transaction allows the company to expand its IT services capabilities, its suite of service offerings as well as the geographic and vertical coverage of customers and partners,\" Lenovo<\/a> said.
The company, which last month warned of a hit to shipments in the short term due to China's COVID-19 lockdowns exacerbating chip shortages, will pay PCCW $513.6 million in cash and issue 86.4 million shares at HK$9.025 a piece. Lenovo's shares closed at HK$7.57 on Tuesday.
PCCW anticipates a gain of $100 million from the disposal, it said in a separate filing, adding it will use the proceeds to invest in growth areas and to repay debt, among others.
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