Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) and Alat, a Public Investment Fund (PIF) company, have finalized a $2 billion investment through three-year zero-coupon convertible bonds, following shareholders’ and regulatory approvals. This strategic collaboration, first announced in May 2024, positions Lenovo to accelerate its transformation, expand its global footprint, and tap into the growing opportunities in the Middle East and Africa (MEA) region.
Lenovo will establish its Middle East and Africa regional headquarters (RHQ) in Riyadh, Saudi Arabia, and build a sustainable manufacturing facility in the Kingdom. The facility, expected to start production by 2026, will manufacture millions of PCs and servers annually using local R&D teams to deliver fully end-to-end “Saudi Made” products. This factory will be part of Lenovo’s global manufacturing network of over 30 sites, including those in China, Germany, India, and the USA.
As part of this collaboration, Alat will provide regional expertise and support Lenovo in expanding its presence across the MEA region. Lenovo plans to invest in flagship retail spaces, R&D initiatives, marketing, and strategic partnerships in Saudi Arabia and beyond. This partnership is expected to create thousands of jobs and contribute to Saudi Arabia’s Vision 2030 goals of economic diversification, industrial growth, and innovation.
Yuanqing Yang, Chairman and CEO of Lenovo, stated that this collaboration provides Lenovo with resources and financial flexibility to further its transformation while leveraging the growth momentum in Saudi Arabia and the MEA region. Amit Midha, CEO of Alat, emphasized the importance of this partnership, highlighting the potential for Lenovo to enhance its presence and deliver clean-energy-powered manufacturing in the Kingdom.
Lenovo also announced a three-year 1.15 billion Warrants Issuance in May 2024 to support its growth strategy. This initiative received full subscription, with 43% taken by Lenovo leadership, showcasing confidence in the company’s ongoing transformation and market leadership.
Citi and Cleary Gottlieb Steen & Hamilton (Hong Kong) advised Lenovo on this transaction, while Morgan Stanley and Latham & Watkins advised Alat. The partnership is set to redefine Lenovo’s growth strategy in the MEA region, contributing to the Kingdom’s industrial and technological development.