Lenovo made the biggest purchase since it bought the IBM PC business years ago this week. The Chinese computer company has announced that it is buying up German computer firm Medion AG in a deal that will grab Lenovo 14% of the German PC market and a 7.5% share of the overall computer market in Western Europe. The deal will see Lenovo making a public offer for all outstanding public shares of Medion AG stock at 13 euros each in cash.
The 13 euro price is a 29% premium over the average closing price of the stock based on the previous 30 calendar days and a 27% premium over the average closing price for the previous 90 calendar days. A separate agreement will get Lenovo 40% of Medion AG outstanding shares from Gerd Brachmann at the same 13 euro per share price with 80% of the buy paid in cash and the other 20% paid in Lenovo stock.
Lenovo notes that the public offer is conditional on a minimum participation level of 15% of shareholders selling not counting the purchase of stock from Brachmann. Despite the sale of a large amount of stock by Brachmann, he will remain a major shareholder in Medion AG with 20% of the company stock.
[via (PDF) Lenovo]