Global sourcing company Li & Fung has announced a US $1.1 billion strategic divestment that will see the Hong Kong based business sell three of its divisions covering the furniture, sweaters ad beauty verticals. The move is subject to independent shareholders’ approval and will see the businesses transfer to a buyer consortium, with a 45 per cent stake taken by private equity firm Hony Capital, 45 per cent to Fung Holdings 1937 Limited, and 10 per cent to Fung Investments Limited.
The transaction is expected to close in the first half of 2018. Li and Fung will continue to provide supply chain solutions, logistics and to operate its domestic wholesale business.
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