Summary by Futu AI
The Lenovo Group Limited (Lenovo Group) announced on 28 May 2024 that it has entered into a strategic cooperation framework agreement with Alat, a wholly owned subsidiary of the sovereign wealth fund Public Investment Fund of the Kingdom of Saudi Arabia. The move is designed to accelerate Lenovo Group's global strategic transformation, enhancing its influence in the Middle East and Africa (MEA) region and diversifying its production footprint. Lenovo Group will establish MEA regional headquarters and new production facilities in Saudi Arabia to expand its global business. In addition, the Lenovo Group will issue Alat US$2 billion of zero-dividend convertible bonds, the net proceeds of which will be used to repay existing debt and replenish operating capital. The convertible bonds will mature three years after issue and can be converted into shares, and are expected to expand Lenovo Group's issued shares by approximately 10.78%. Completion of the bond issuance and conversion of shares is subject to approval by the General Meeting and subject to other prerequisites.