The shares held in HP by the conglomerate reportedly translate into a stake of around 11%
Berkshire Hathaway has purchased nearly 121 million shares of HP. (Credit: LPS.1/Wikipedia.org)
Berkshire Hathaway has bought close to 121 million shares of HP, as per the filings of the former with the US Securities and Exchange Commission (SEC).
The Warren Buffett-controlled conglomerate has taken a stake worth $4.2bn in the American information technology company, reported Reuters. The value of the investment was based on the $34.91 closing stock price of HP, as per the publication.
Berkshire Hathaway purchased some of the stock in multiple transactions, earlier this week. The shares held in HP by the conglomerate reportedly translate into a stake of around 11%.
The buying of the shares in HP is the latest in a series of large investments made by the group, which includes an $11.6bn deal to acquire Alleghany, which owns and operates property and casualty insurance subsidiaries.
An HP spokesperson, has been quoted by Bloomberg, as saying: “Berkshire Hathaway is one of the world’s most respected investors and we welcome them as an investor in HP.”
Last month, the company signed a deal to acquire Poly, a US-based provider of workplace collaboration solutions, for $3.3bn. As per the terms of the deal, Poly’s shareholders will be paid $40 per share in cash by HP.
HP is acquiring Poly to accelerate its strategy to develop a more growth-oriented portfolio. The company further stated that the acquisition of Poly strengthens its industry opportunity in hybrid work solutions, and will help it in value creation and long-term sustainable growth.