Wireless News

Lenovo’s $100m sale of the company’s cellphone arm has been approved by shareholders, clearing the final hurdle necessary before buyer Hony Capital can take over the dwindling business.  Hony Capital, a private equity firm, have paid just $8m less than sales of Lenovo’s cellphones made in the last quarter, after a 31-percent drop in shipments.

The sale actually completed on March 17th, but the news was delayed until the end of the company’s fiscal year on March 31st.  Proceeds from the sale will be reflected in Lenovo’s Q4 and annual financial results, but considering their notebook sales brought in $2.6bn, a 38-percent year-on-year rise, it’s unlikely to add up to too significant an impact.

It’s unclear whether Hony Capital will attempt to nurse their new acquisition back to health, or break the company down and sell on its assets.

Lenovo has revealed a deal with Hony Capital to offload its cellphone business, a branch of the company little known about outside of the Chinese market. The private equity firm will pay $100m for the group.

Shipments of Lenovo cellphones had dropped 31-percent in the last quarter, generating sales of $108m. This compares poorly to notebook sales, which rose 38-percent year-on-year, generating sales of $2.6bn.

The deal must be approved by shareholders before it can be completed.