* China Oceanwide Holdings to buy 29 pct stake in Legend
* Legend owns about 45 pct of Lenovo, world No. 4 PC maker
* Analysts say sale will have no direct impact on Lenovo
By Melanie Lee
SHANGHAI, Sept 4 China Oceanwide Holdings Group,
a private investment firm, said on Friday it has bought 29
percent of Legend Holdings, the parent of the world's No. 4 PC
maker, Lenovo (0992.HK), for 2.76 billion yuan ($404.1 million).
China Oceanwide was founded in 1988 and has holdings in real
estate, finance and energy. It bought the stake from the asset
management unit of the Chinese Academy of Sciences who had
previously owned 65 percent of Legend Holdings.
A spokeswoman for China Oceanwide told Reuters the firm's
stake in Legend will be locked up for 5 years and that more
information would be available at a media event in Beijing next
China Oceanwide's website states that it has a registered
capital base of 4 billion yuan, meeting a key requirement of the
Academy when it sought buyers last month.
The Academy wanted to spin off Legend to better improve its
A spokeswoman for Legend Holdings said the deal would make
China Oceanwide the group's third-largest shareholder. Legend
Holdings owns more than 45 percent of Lenovo, data from Thomson
Lenovo dominates its home PC market in China, but has
struggled on the world stage, especially in developed markets,
since its landmark acquisition of IBM's (IBM.N) PC assets in
Analysts had said previously they did not expect the sale to
have a direct impact on Lenovo.
Founded in 1984 as a spin-off of the Chinese Academy of
Sciences, Lenovo started as a distributor for foreign brands and
began its own production in 1990.
Lenovo's share of the global PC market in the second quarter
rose 0.5 percentage points to 8.7 percent, research firm IDC
said, reversing consecutive quarters of falling market share.
Lenovo reported a third straight quarterly loss in
April-June, but the loss was smaller than expected thanks in part
to China's massive stimulus package, stabilising consumer demand
and a slew of cost-cutting measures. [ID:nTP97926]
(Additional reporting by Kelvin Soh in Taipei; Editing by