Google is planning to acquire a 6 per cent stake in Lenovo for $750m (£459m) after its Motorola Mobility acquisition deal with the Chinese PC maker is all done.
According to a Hong Kong stock exchange filing, the internet search giant would buy 618.3 million Lenovo shares at $1.213 per share.
Last month, Lenovo announced that it has spent around $5 billion for two major acquisition deals including purchase of Motorola handset business for $2.91 billion and IBM’s low-end server unit for $2.3 billion.
In a joint statement issued by Google and Lenovo, the China based company mentioned that it will pay $660 million in cash, $750 million in Lenovo ordinary shares, and another $1.5 billion in the form of a three-year promissory note in order to acquire Motorola.
Lenovo’s $2.91 billion Motorola Mobility acquisition is being considered as China’s largest-ever tech deal, with the company looking to enter the extremely competitive Apple dominated U.S. handset market.
With this acquisition Lenovo plans to offer more sophisticated products in order to compete against the handset market leaders including Apple and Samsung Electronics as well as other popular Chinese smartphone makers in the U.S. and the European markets.
The PC maker has lost 24% of its market value since the Motorola Mobility deal worth $2.91bn was announced on 29 January.
Lenovo will be releasing its latest earnings on February 13.
