UPDATE 1-TPG, GA eye Lenovo exit with $201 mln selldown-sources

Mon Nov 15, 2010 10:45am GMT

Quotes

   

* Ending one of TPG's landmark China investments

* Eyes pricing between HK$5.45-$HK5.53 per share - source

* Nomura sole bookrunner on deal - source (Releads with detail, additional source comment)

By Shankar Ramakrishnan and Michael Smith

HONG KONG, Nov 15 (Reuters) - Private equity firms TPG Capital [TPG.UL] and General Atlantic are looking to exit the world's No. 4 PC brand Lenovo (0992.HK), with a $201 million share placement, sources said on Monday.

The placement would end another landmark investment in China for TPG. The San Francisco-based firm, one of the world's largest buyout companies, originally invested in Lenovo five years ago to help the computer maker acquire IBM's (IBM.N) personal computer business.

They are offering 282.26 million shares at between HK$5.45 and HK$5.53, a discount of 0-1.43 percent from Monday's closing share price, according to one source familiar with the deal.

Nomura was sole bookrunner on the expected total fundraising of up to HK$1.56 billion, a source said, confirming an earlier IFR report on the sale.

The final price was expected later on Monday, a source said.

TPG invested $200 million in Lenovo in 2005, with TPG unit Newbridge kicking in $50 million and General Atlantic another $100 million. In November 2007, TPG, Newbridge and GA sold $360 million worth of shares.

The Lenovo selldown is another China exit for TPG, with Newbridge exiting its Shenzhen Development Bank Co Ltd 000001.SZ stake earlier this year, in a two-part deal that earned them around $2.4 billion cash.

Newbridge acquired 299.1 million Ping An Insurance (Group) Co of China Ltd (2318.HK)(601318.SS) shares in May in exchange for giving a stake in Shenzhen Development Bank to the Chinese insurer.

TPG got a 4 percent stake in Ping An, the world's second largest insurer. TPG bought a 17 percent stake in the Shenzhen bank in 2004 for $150 million. (Editing by Jacqueline Wong and Muralikumar Anantharaman)