Li & Fung Announces Investment of US$300 Million by Temasek in LF Logistics
Friday, June 28, 2019
(Press Release) – Li & Fung Limited (“Li & Fung,” “the Group,” or “the Company;” SEHK: 494), the world’s leading supply chain solutions partner for consumer brands and retailers, today announced it has entered into a Subscription Agreement with Temasek, the Singapore-headquartered investment company (“Temasek”), for a cash consideration of US$300 million for approximately 21.7% stake of its Logistics business (“LF Logistics”).
The investment values LF Logistics at approximately US$1.4 billion on a post-money equity valuation basis. Upon completion, Li & Fung will remain a controlling shareholder of LF Logistics, which at a 78.3% stake equates to approximately HK$1 of the Company’s current share price. Proceeds from the investment will be used to fund future capital expenditures, repay existing bank facilities and accelerate business growth initiatives at LF Logistics. As a result of this investment, the proposed spin-off IPO will be postponed until further notice.
LF Logistics has achieved multiple-year double digit organic growth and it maintains strong momentum from multiple growth drivers, including robust growth in China, the e-logistics boom, accelerated development in ASEAN across all of its services, and its rapid expansion into new geographies including Japan, Korea and India.
