With the completion of the investment, Temasek holds a 21.7% stake in  LF Logistics

With the completion of the investment, Temasek holds a 21.7% stake in LF Logistics

Sourcing giant Li & Fung has completed a deal to sell a 21.7% stake in its logistics business for US$300m to Singapore-headquartered investment company Temasek.

The move was first announced last month and values LF Logistics at about $1.4bn.

The investment, Li & Fung says, will allow it to unlock the value of LF Logistics and accelerate its growth, as well as enhancing Li & Fung's capital structure and financial flexibility.

The move means LF Logistics is now 78.3% owned by Li & Fung as the controlling shareholder, and 21.7% owned by Temasek. 

The investment also means that a proposed spin-off IPO of the business unit has been postponed until further notice.

"We are excited about the new chapter for LF Logistics following this investment to further accelerate our business growth," says Joseph Phi, group president, Li & Fung.

"With operations in all of Asia's fastest growing cities, we are well positioned to capitalise on the business opportunities brought by the rise of the Asian middle class, growth in e-commerce logistics, accelerated development in ASEAN, and our rapid expansion in new geographies including India."

"The investment from Temasek represents a positive signal from the capital market on LF Logistics' strong organic growth," adds Li & Fung group CEO Spencer Fung. "Our logistics strength integrated with Li & Fung's sourcing and new digital supply chain solutions represents a unique end-to-end offering that encompasses the entire value chain."