TPG, General Atlantic, Newbridge sell $374m in Lenovo shares

TPG, General Atlantic and Newbridge Capital have partially exited their investment in Lenovo, just two years after backing the computer company’s acquisition of the personal computer business of IBM.

TPG, General Atlantic and Newbridge Capital have partially exited their stake in Chinese computer manufacturer Lenovo, shortly after the company’s stock reached a seven year high thanks to strong earnings growth and the launch of a new product line.

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In a private placement managed by Goldman Sachs today, the consortium sold a total of 350.5 million shares, earning HK$2.9 billion ($374 million, €255 million).

The firms have already returned more than their initial investment of $350 million, which the firms paid in 2005 to back Lenovo’s acquisition of IBM’s personal computer business. TPG invested $200 million, General Atlantic invested $100 million and Newbridge invested $50 million for a combined 10.1 percent stake in Lenovo.

The firms have sold a roughly 4 percent stake in the company at between HK$8.16 and HK$8.33 per share, a 4.6 percent to 6.5 percent discount to the stock’s closing price yesterday. At Lenovo’s current common share price of HK$8.11, the firms’ remaining stake is valued at about HK$4.5 billion ($580 million). The consortium has agreed not to sell any more shares for 60 days.