Nov. 27 (Bloomberg) -- Lenovo Group Ltd., China’s biggest personal-computer maker, said it will buy back a mobile-phone unit at double the price it sold the subsidiary for last year.

Lenovo Group agreed to pay $200 million in cash and shares to buy Lenovo Mobile Communication Technology Ltd. from investors including a unit of Hony Capital, the private-equity company controlled by the PC maker’s parent Legend Holdings Ltd., according to a Hong Kong stock exchange filing today. That compares with the $100 million Lenovo Group agreed to sell the mobile-phone company for in January 2008.

The computer company sold its unprofitable mobile-phone division to focus on PCs as it sought to fend off rising competition from bigger rivals including Hewlett-Packard Co. and Acer Inc. The handset unit returned to profit last year following the disposal, as demand for communications devices increased in China, the world’s biggest phone market.

“Lenovo Mobile has noticeably improved its financial position and market presence,” Lenovo Group said in the statement.

The mobile-phone company will first attempt to increase market share in China and then roll out handsets globally, Wong Wai Ming, chief financial officer at Lenovo Group, told reporters at a news conference today.

Other investors in Lenovo Mobile include Shenzhen AoYinShi Investment LP and Gainnew International Ltd., according to the statement.

Lenovo Mobile posted a profit of 30.4 million yuan ($4.45 million) last year, compared with a loss of 184 million yuan in 2007, according to the statement.

To contact the reporters on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net; Wendy Leung in Hong Kong at wleung12@bloomberg.net

Last Updated: November 27, 2009 08:35 EST