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May 13, 2020

Li & Fung privatisation deal gets green light

Global sourcing and logistics giant Li & Fung has been given the green light by shareholders to take the company private.

By Michelle Russell

Global sourcing and logistics giant Li & Fung has been given the green light by shareholders to take the company private.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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The scheme, which will see Li & Fung controlled by the founding Fung family, received “significant” support from shareholders, with 97.14% of disinterested shareholders voting in favour at a meeting yesterday (12 May).

“I am pleased that our shareholders are supportive of the privatisation proposal for Li & Fung,” said chairman William Fung. “I would also like to deeply thank our shareholders for their long-term support of our company through nearly three decades of change in the global retail industry.”

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 comes as the Hong-Kong based supply chain solutions provider is being buffeted by the US-China trade war and the global coronavirus pandemic.

Following the privatisation, the Fung family will hold 60% of the voting shares in the company and will retain control. GLP Pte Limited (GLP), a global logistics warehouse operator and investor, will hold the remaining 40% of the voting shares and 100% of the non-voting shares, resulting in an effective economic ownership of 67.67% of Li & Fung.

The scheme remains subject to the fulfilment or waiver of certain conditions, including sanction by the Bermuda Court in a petition hearing on 21 May.

“The company’s goal to create the Supply Chain of the Future remains more relevant than ever with the digital disruption to retail and the ongoing uncertainties of the US-China trade war, compounded by the dramatic impact of Covid-19 on retail supply chains,” Li & Fung said in its announcement yesterday.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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