Shares in Lenovo resumed trading on Wednesday, after being temporarily suspended due to the sale of 300 million shares by IBM, the PC company's second-largest shareholder.
In a filing to the Hong Kong stock exchange, Lenovo said IBM was expected to complete the sale of the shares today at a price of HK$3.20 (28 pence) per share – a discount of 7% to the share's closing price on Monday and the same price of the shares when trading was suspended at Lenovo's request on Tuesday.
Lenovo's shares were trading at HK$3.23 on Wednesday morning, local time.
The shares sold by IBM represent 3.5% of Lenovo's outstanding shares and are worth HK$960 million (£62.4m). The sale reduces IBM's share in Lenovo from 14.7% to 11.3%. IBM remains the company's second-largest shareholder behind parent company Legend Holdings.
The sale of shares by IBM will boost the percentage of Lenovo's stock held by public investors from 34.2% to 36.7%, the filing said. Legend Holdings' stake will also increase from 41.9% to 42.4%, it said.
IBM has steadily been selling down its stake in Lenovo, which acquired IBM's PC division in 2005. Despite the sale of shares, the two companies remain close partners. On Tuesday, Lenovo announced an end-user services agreement with IBM that could be worth $245 million in revenue for IBM over the next five years.