Li & Fung Score Privatization Offer

The world’s largest supplier of consumer goods may be going private.

License Global

March 23, 2020

1 Min Read

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.

About the Author(s)

License Global

License Global is the leading news source for the brand licensing industry, delivering award-winning editorial content including news, trends, analysis, and special reports about the global consumer product and retail marketplace.

Through its print edition, website, daily e-newsletter and event publications, License Global reaches more than 150,000 executives and professionals in all major markets. The magazine also serves as the official publication for the sector’s trade events, which include Licensing Expo, Brand Licensing Europe, Licensing Expo Japan, Licensing Expo Shanghai and the Licensing Leadership Summit.

Subscribe for updates directly into your inbox.




Subscribe and receive the latest news from the industry Article
Join 62,000+ members. Yes, it's completely free.

You May Also Like