Lenovo re-enters the mobile business

Buys it back for twice the price.

PC manufacturer Lenovo has announced plans to buy back the mobile phone business that it offloaded nearly two years ago.

The firm sold the struggling business in January 2008 for US$100m ($110m), but the recent convergence of the business and mobile phone markets has prompted Lenovo to re-enter the market.

Reports on Reuters suggest that Lenovo will pay US$200m to buy the business back from a group of investors.

"Since the sale in 2008, Lenovo Mobile has noticeably improved its financial position and market presence under decisive management actions, and positioned itself for growth," said Lenovo in a statement released to the Hong Kong stock exchange.

"The directors believe that, through the acquisition, the group can exploit Lenovo Mobile's experienced and successful leadership team in the China mobile industry."

A call to Lenovo's press department in the UK for confirmation had not been returned at the time of publication.