Lenovo CEO splashes out US$403m on shares purchase

楊元慶成聯想集團最大個人股東

Yang Yuanqing, chief executive of Lenovo Group, bought 797 million shares of the PC maker from parent company Legend Holdings Ltd. for US$403 million, according to documents filed with the Hong Kong Stock Exchange on Friday.

The purchase makes Yang Yuanqing the firm's largest individual shareholder with 8.7 percent of outstanding shares. Analysts have interpreted the move as a sign Lenovo Group founder Liu Chuanzhi plans to cede full control of the company to the CEO.

Legend Holdings still holds nearly 35 percent of Lenovo stock after the deal, remaining Lenovo's largest shareholder.

Calculated at the $0.53 price at close on Friday, Yang's 797 million shares are worth about US$423 million.

Legend Holdings Ltd. declined to disclose details about the deal.

Lu Bowang, president of China IntelliConsulting Corp., a Beijing-based consultancy, said the investment quite likely was likely backed by institutional investors.

"With his salary and bonuses, Yang is unable to make such a big investment," said Lv. "Even if he is paid HK$5 million a year, he would only have earned about HK$400 million over his 22-year career."

Yang's investment was perhaps funded by banks or private equity firms, Lv said.