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Technology

Lenovo's <0992.HK> parent eyes HK list -report

HONG KONG, May 31 (Reuters) - Legend Holdings, parent of the world's No.4 PC maker Lenovo Group 0992.HK, plans to seek a Hong Kong listing in the next five to seven years, the South China Morning Post reported on Monday, citing chairman Liu Chuan-zhi.

Legend, also a major shareholder of Digital China Holdings 0861.HK, aims a listing in the city in a bid to raise sufficient funds for its diversified businesses, the newspaper said. It also plans to list it property unit Raycom Real Estate in the mainland.

“Raycom will probably list on the mainland. After that, Legend Holdings will have an H-share listing in Hong Kong,” Liu was quoted as saying. He gave no further details.

Legend also plans to invest 13 billion yuan ($1.90 billion) in energy, environment and chemcial sectors and will subsequently list some of them after Legend’s H-share listing, Liu added.

Competiting Hewlett-Packard HPQ.N, Taiwan's Acer 2353.TW, and Dell DELL.O, Lenovo is facing pressures from competition and volatile financial markets as it posted a quarterly profit that lagged forecasts, dragged down by shrinking margins in its return to its roots as an emerging markets specialist. [ID:nTOE64O08D]

Lenovo shares were up 1.5 percent by 0244 GMT on Monday, and Digital China was up 0.5 percent, outperformining a 0.2 percent rise in broader Hang Seng Index .HSI.

Reporting by Twinnie Siu and Donny Kwok; Editing by Ken Wills

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