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Compal to unload all Lienpal stakes to Lenovo for US$257 million
Source: DIGITIMES   Editor: Helan   Update Time :2018/8/8 17:40:40

Compal Electronics has decided to unload all its shareholdings in Lienpal (Hefei), a notebook manufacturing joint venture between Compal and Lenovo, to its China-based partner for a total of US$257 million, based on a resolution passed by the firm's board of directors, according to company spokesman Gary Lu.

At a press conference held on August 7, Lu announced the decision, saying that the share ownership transfer will be carried out as a cash deal between Compal's wholly-owned subsidiary Billion Sea Holdings (BSH) and a Hefei subsidiary of Lenovo, with August 31 set as the final delivery date.

The joint venture Lienpal (Hefei) was founded in April 2012, with Compal contributing US$147 million for a 49% stake. Based on the founding agreement, Compal has been allowed to sell its shareholdings in Lienpal since Oct. 1, 2017. The unit share price is set based on the joint venture agreement and the share value evaluation report provided by an independent third party organization after deducting relevant tax payment.

Lu said Compal has decided to dispose of all stakes in Lienpal because it has accomplished the phased goal of investment in the joint venture, adding that Compal is still optimistic about continuing business with Lenvo, long among the firm's important partners and customers.

The proceeds from sales of Lienpal shares will be used to enrich Compal's operating funds. At the moment, Compal maintains plants in China's Kunshan, Nanjing and Chongqing, as well as in Mexico, India, Brazil and Poland.

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