Li & Fung, a leading supplier of consumer goods, is trying to privatize the company in a Hong Kong $7.22B deal amid the U.S.-China trade war and the COVID-19 pandemic.

Singapore-based GLP, a logistics warehouse operator and investor, along with a consortium of the Fung family, who started the trading business more than 100 year ago, has offered HK $1.25 per share in the privatization deal. This represents a premium of about 150 percent to the stock’s last closing price, according to a report from The Straits Times.

The privatization offer will see that the Fung family sees no change to its 32.3 percent share of Li & Fung. GLP will take over the rest of the stock that is currently handled by public investors including Norges Bank and Vanguard Group.

"As the outbreak expands into North America and Europe, it may further affect retail sentiment, which is already being battered by economic weakness," Spencer Fung, chief executive, Li & Fung, said in a media briefing. "At this juncture, we believe the impact will be felt throughout the year."

The company reported a full-year revenue drop of 10.1 percent. Core operating profit fell by 22.9 percent to $228 million.