HCL Infosystems surges on report of Lenovo interest

Shares of HCL Infosystems surged more than 20 percent after a local newspaper reported China's Lenovo Group <0992.HK> is in talks to buy a 50.77 percent controlling stake in the Indian company for around 5 billion rupees.

The Financial Chronicle reported the talks, citing unnamed senior officials at personal computer maker Lenovo and investment bankers familiar with the development.

HCL Infosystems' corporate communications head Ashutosh Bhattacharya told Reuters in a text message that the company would make a statement later on Tuesday.

Shares in HCL Infosystems, which manages computer systems for large organisations, mostly in India, were trading up 16.3 percent at 0605 GMT. Lenovo shares were down 0.5 percent.

 

For the quarter ended June 30, HCL Infosystems reported consolidated profit of 20 million rupees compared with 115 million rupees a year earlier. Sales for the quarter rose to 27.2 billion rupees from 26.2 billion rupees.

HCL Infosystems also makes its own branded computers including laptops, desktops and tablets. The company decided in June to streamline its computer products business into a separate wholly owned subsidiary.