May 29th, 2024
- Alat to make investment into Lenovo
- Lenovo to set up regional headquarters and sustainable manufacturing hub
Riyadh, May 29, 2024 – Alat, a PIF company launched on February 1, 2024 by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Board of Directors of Alat, together with Lenovo, today announced a Strategic Collaboration and Investment by Alat into Lenovo, a global technology powerhouse focused on the research and development, manufacturing, and sale of smart devices, smart infrastructure, smart solutions and services.
Alat, headquartered in Riyadh, Saudi Arabia, is the organization responsible for transforming global industries (electronics and industrials) and creating a world class manufacturing hub in the Kingdom powered by clean energy. Today, Alat is proud to announce a Strategic Collaboration with Lenovo and Investment1 into the company, in which Lenovo will establish a regional headquarters in Riyadh for the Middle East and Africa (MEA) region, and a new manufacturing hub in the Kingdom to complement its existing 30+ manufacturing sites around the world. The facility will focus on smart sustainable manufacturing and will initially serve customers in the MEA region. The Strategic Collaboration and Investment are part of Alat’s wider commitment to support the Saudi Vision 2030 to support sustainable manufacturing powered by clean energy, create new jobs in the industrial and electronics sectors, and capitalize on economic growth opportunities in the region. Alat expects 15,000 direct and 45,000 indirect jobs created locally in Saudi Arabia through this investment, generating a cumulative GDP impact of US$10 billion by 2030.
The investment is in the form of a Bond Subscription Agreement in which Lenovo will issue US$2 billion in convertible bonds.2 The Convertible Bonds are due in three years after issuance and will be convertible to equity upon maturity at an initial conversion price of HK$10.42 per share.
Amit Midha, CEO at Alat, said: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company. With the establishment of a regional headquarters in Riyadh and a world class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region.”
Yuanqing Yang, Chairman and CEO of Lenovo, said: “Through this powerful strategic collaboration, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in the MEA region. Looking ahead, Lenovo plans to build a tech & manufacturing hub in Saudi Arabia and will help define the future of the region as a center of innovation which Alat will benefit from. This is a huge vote of confidence in our company, our market leadership, and our future growth potential.”
As the Kingdom continues to diversify its economy, digital transformation remains a key enabler of the success of Saudi Vision 2030. The partnership between Alat and Lenovo seeks to not only realize the transformative potential of digital technologies but also to establish the region as a global hub of innovation, where homegrown talent and expertise flourish, making a lasting impact on the region’s journey towards a diversified, resilient, and technologically empowered future.
1Strategic Collaboration Framework Agreement (“Strategic Collaboration”) and a Bond Subscription Agreement (“Investment”)
2Subject to the approval of Lenovo’s shareholders