Lenovo Group (HKG:0992) plans to issue new convertible bonds to institutional investors, with final terms including size and pricing to be set through a book-building process.
The bonds will not be offered to the public in Hong Kong and are not expected to be placed with connected persons of the company, Lenovo said in a Wednesday filing to the Hong Kong bourse.
Proceeds from the proposed issuance are expected to be used to repurchase part or all of Lenovo's outstanding $675 million in 2.50% 2029 convertible bonds. In parallel, the company has appointed dealer managers to engage holders of the existing notes who may be willing to sell.
Following completion of the transactions, Lenovo intends to pursue on-market share buybacks from time to time, subject to shareholder approvals and regulatory limits, to manage potential dilution.