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government-trade

Temasek Holdings to Invest $500M in Li & Fung

Hong Kong-based firm plans more acquisitions.

Fresh from snapping up handbag company Van Zeeland Inc., Hong Kong-based sourcing giant Li & Fung Ltd. has lined up a new investor as it sets its sights on more acquisitions. Singapore-based investment firm Temasek Holdings Ltd. has agreed to invest 3.9 billion Hong Kong dollars, or about $500 million, in the Hong Kong company via a specially reserved Li & Fung capital increase. Temasek will buy 168 million new Li & Fung shares at 23 Hong Kong dollars, or $2.95, per share , giving the Singapore company a 4.6 percent stake in Li & Fung.  The latter said it will use most of the proceeds to fund further acquisitions. Last month, Li & Fung’s U.S. subsidiary bought Van Zeeland for $330 million. “We have no doubt that this strategic investment by Temasek will be of benefit to Li & Fung’s activities in Asia and will further enable us to take advantage of any acquisition opportunities that may arise in this economic environment,” William K. Fung, group managing director of Li & Fung Ltd., said in a statement.