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Logo of Alat and Lenovo Group
Lenovo Group signed a strategic collaboration framework agreement and a bond subscription agreement with Alat, a Public Investment Fund (PIF) company, the Chinese firm said in a statement today, May 29.
The collaboration includes Lenovo’s plans to establish its regional Middle East and Africa (MEA) headquarters in Riyadh, which will include a customer center and a research and development center focusing on the region.
Lenovo will also establish a new PC and server manufacturing facility in Saudi Arabia, extending the company’s existing global footprint that already includes 30 manufacturing sites around the world.
In addition, the parties have entered into a bond subscription agreement in which Lenovo will issue $2 billion in convertible bonds to Alat, which are due in three years after issuance and will be convertible to equity at maturity at an initial conversion price of HK$10.42 per share.
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