Legend Holdings diversifies into liquor production

By Yang Xi
0 CommentsPrint E-mail China.org.cn, June 14, 2011
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Legend Holdings diversifies into liquor production 联想控股要"喝"白酒

Legend Holdings Ltd., the parent of personal computer giant Lenovo Group Ltd., is planning to buy a 39 percent stake in a subsidiary of Luzhou Laojiao Company, a Sichuan-based liquor enterprise, the National Business Daily reports.

The purchase of Hunan Wuling Wine Co. would be Legend Holdings’ first acquisition in the liquor sector after the company announced plans to diversify into agricultural production.

Wuling Wine Co. was established in 1952 in central China’s Hunan Province. Luzhou Laojiao Company bought a 60 percent stake in the company in 2003 and increased its stake to 80 percent in 2007.

In 2009, Legend Holdings unveiled plans to go public in 2014.

"To create market value at an appropriate level and keep a more than 30 percent annual profit growth after Legend Holdings is listed, we need to restructure our businesses," said Liu Chuanzhi, chairman of Legend Holdings.

每日经济新闻报道,联想控股将买入泸州老窖旗下的湖南武陵酒有限公司7843万股,并成为该公司占股39%的大股东。

据了解,这是在联想控股宣布进军现代农业等领域之后,洒业出现的首个收购对象。

武陵酒始建于1952年湖南。2003年,泸州老窖股份公司收购武陵酒业有限公司60%的股权,2007年,泸州老窖增持武陵酒股权,持有其80%的股权。

2009年,联想控股公布了其2014年整体上市的目标。

"为了达到规模相当的市值,同时要确保上市以后,公司的整体的利润每年要有超过30%的持续增长,这就要求我们的业务组合作出调整。"联想控股总裁柳传志表示。

China's business press carried the story above on Tuesday.

 
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