Legend to invest RMB 10 bln in clean energy sector in 5 years

Sep. 9, 2009 (China Knowledge) - Legend Holdings, parent of the world's fourth-largest PC manufacturer Lenovo Group Ltd<0992><LNVGY>, Tuesday announced that it will invest RMB 10 billion in clean energy and new materials sectors in the next five years, sources reported.

Legend is also interested in conducting investments in technology, financial services and industries that aim to satisfy domestic need.

Lenovo Chairman Liu Chuanzhi was appointed as chairman of Legend, representing the firm's employees who hold a combined 35% stake in Legend. Meanwhile, Chinese Academy of Sciences Holdings Co Ltd holds 36% stake in Legend, while China Oceanwide Holdings Group holds the remaining 29% stake in the firm at a cost of US$404 million.

The medium-term goal of Legend is to go public, so as to obtain more funds and a better platform for the firm's further development, according to Liu, adding that the Hong Kong Stock Exchange might be the possible listing place.

People familiar with the deal revealed that Legend will invest in industrial companies, expanding the fields it made direct investments nowadays. The firm will be converted to a company modeled on Sweden's Investor AB, which holds stake in several important firms in different fields, and will form its core assets through these direct investments.