Global sourcing giant Li & Fung is remaining coy on speculation it is in talks to acquire South Korean children's apparel manufacturer Suhyang Networks.

Li & Fung is reported to be holding discussions to acquire the garment maker for around KRW2bn (US$1.8m), according to South Korean newspaper Maeil Business. The consumer goods company has completed due diligence on Suhyang Networks, the report added. 

However, a spokesperson for the company said: "Li & Fung does not comment on market rumour."

Earlier this month the sourcing firm issued $500m worth of perpetual bonds to raise funds specifically for “strategic acquisitions and business development”.