Legend Holdings, which owns Lenovo, is to see its stakeholding change significantly when the asset management arm of the Chinese Academy of Sciences sells a 29% share of the company for $404-million. It currently owns 65% of Legend.
Legend is the parent company of Lenovo, which is the biggest PC manufacturer in China, and fourth-largest in the world.
The New York Times reports that a Legend spokesman confirmed the reports, saying the academy wanted to strengthen the company's management by selling part of its stake to an investor with better knowledge of corporate governance and more market expertise.
Whoever bought the stake would have to promise not to resell if for at least five years.
The decision to sell off part of the company is not a response to the current economic slowdown, the spokesman says, but part of a long-term plan to shift holdings in Legend from state-run organisations to more market-orientated companies.