IBM raises US$83.6 mln from selling stakes in Lenovo

International Business Machines Corp (IBM) sold 116.19 million shares in China's Lenovo Group<992>, raising US$83.6 million in the latest sale of its shares in the Chinese leading personal computer maker.

The shares were sold at a price range of HK$5.61-HK$5.76 a piece, representing a discount of 6% to Lenovo's HK$5.97 closing price in Hong Kong on Monday.

The sale of the 116.49 million shares in Lenovo, or 1.3% stake in the company, will reduce IBM's stake in it to 6.5%, sources said.

Since IBM bought 15% stakes in Lenovo in mid-2005, the company has been steadily selling down its stake in Lenovo. Recently, it completed another 1.3% stake sale at the end of February, at a much lower HK$5.41 a piece. However, IBM will not be allowed to sell any more shares in Lenovo until after Jun. 30, according to a term sheet.