The Chinese state institution that controls Legend Holdings, parent of personal computer maker Lenovo, is offering to sell a 29 per cent stake for Rmb2.76bn ($405m) to encourage better corporate governance.

The Chinese Academy of Sciences, a state body that owns 65 per cent of Legend, said the planned divestment was part of a multi-year roadmap to retreat from industrial subsidiaries it helped found and free up cash to fund new start-ups. However, the deal is also designed to retain the state's majority ownership of Lenovo. A minority stake in Legend would give the buyer exposure to Lenovo – which acquired IBM's PC business in 2005 and is the world's fourth largest PC maker. Legend holds just over 45 per cent of Hong Kong-listed Lenovo, according to Bloomberg.

The ties between Lenovo and its parent have recently become closer again after Liu Chuanzhi, co-founder of Lenovo and president of Legend, returned to the helm of the PC maker as chairman in a reshuffle aimed at stopping Lenovo's widening losses.