Global sourcing group Li & Fung has made a bid to acquire Hong Kong based apparel firm Hang Ten for around HK$2.7bn (US$347m).

The sourcing group is offering HK$2.70 per Hang Ten share, a 59% premium over the last traded price.

In the offer document listed on the Hong Kong Stock Exchange, Li & Fung sees the deal helping it to enter the "growing segment of casual fashion apparel with mass appeal, and to increase its presence in key Asian markets including Taiwan, South Korea, mainland China and South East Asia".

Li & Fung's Perfect Lead unit is set to make the offer, and already holds some 69% of the issued share capital of the company.

Hang Ten operates around 790 stores around Asia under the Hang Ten, H&T, and Arnold Parker brands, as well as distributing the brand in other countries.