Global sourcing and logistics giant Li & Fung will delist from the Hong Kong Stock Exchange (HKEX) today (27 May) in a move that marks the successful completion of its privatisation process.
As a privately held company, Li & Fung is owned and managed by the Fung family and GLP Pte Limited (GLP), a global logistics warehouse operator and investor, headquartered in Singapore.
The Fung family will remain the controlling shareholder of Li & Fung with 60% of the voting shares, while GLP will hold the remaining 40% of voting shares and 100% of the non-voting shares, resulting in GLP having effective economic ownership of 67.67%.
Li & Fung received an offer worth US$930.7m to take the company private by a group controlled by the founding Fung family in March. The move came as the Hong-Kong based supply chain solutions provider was being buffeted by the US-China trade war and the global coronavirus pandemic.
The deal, which received “significant” support from shareholders earlier this month, marks the end of Li & Fung’s 28-year tenure as a publicly-listed company in Hong Kong.
“Today marks the start of a new journey for Li & Fung as we focus on achieving a fundamental transformation of our business. While there will be challenges to manage, Li & Fung will benefit greatly from our partnership with GLP. Our commitment to our retail and supply-chain partners remains as strong as ever,” says Spencer Fung, group CEO of Li & Fung. “Whether through our 50-country strong sourcing and production platform, industry-leading digital product development or pan-Asian logistics network, we continue to work closely with our partners to meet ever-changing consumer demands in a complex global environment.”
Ming Mei, co-founder and CEO, adds: “GLP and Li & Fung have a shared vision to create the digital supply chain of the future. I am confident that with its commitment to long-term transformation, Li & Fung will build upon its position as the global retail supply chain leader. I also look forward to exploring the areas where we can deepen our partnership and develop shared opportunities between logistics networks and technology innovation for our customers.”