* Lenovo has no immediate plans to issue bonds due to
uncertain markets, ample cash
* Awaits market to become more stable before considering the
SINGAPORE, July 11 Lenovo Group Ltd,
the world's top PC vendor, has no plans to issue bonds in the
near term because it has sufficient cash in hand and because of
the volatility in global markets, its chief financial officer
Lenovo, which has been acquiring companies over the past few
years to consolidate its market position, conducted roadshows in
Hong Kong, Singapore and London in June, prompting expectations
it would soon tap the market for its first
U.S-dollar-denominated note issue.
"The debt market was actually in a turmoil probably a couple
of weeks ago," CFO Wong Wai Ming told Reuters in a telephone
"So we are still observing the market, so when the market
becomes stable, then we will decide on how to deal with this
proposed bond issue. Obviously we are not in desperate need of
cash in the short term."
The company is cash-rich, with free cash flow around $1.6
billion at the end of 2012, but it would still need to raise
funds for any large acquisition.
Lenovo has hired Credit Suisse and Goldman Sachs
as the joint global coordinators for the issue, Thomson
Reuters publication IFR said.
IFR added that joint lead managers and bookrunners included
BNP Paribas, BOC International, HSBC
, Mitsubishi UFJ Securities, Mizuho Securities
, The Royal Bank of Scotland and Standard
Lenovo has spent billions of dollars over the past few years
in acquisitions. Purchases include Brazilian electronics maker
CCE last year, Germany's Medion AG in 2011 and IBM
Corp's PC business in 2005.
There have been rumours in the market for the past year that
Lenovo was interested in acquiring phone makers Nokia Oyj
and BlackBerry as well as NEC Corp's
mobile phone business and IBM's low-end servers.
Wong declined to name any acquisition targets.
"We continue to look at various opportunities that will work
for us," he said. "There are certain areas in both consumer, as
well as enterprise that we definitely consider as our growth