By  on December 19, 2011

A subsidiary of the privately held Li & Fung Group offered to buy Hang Ten Group Holdings for more than $340 million.

Li & Fung’s Perfect Lead Investments arm is working with Citigroup Global Markets Asia and offered to pay 2.70 Hong Kong dollars for each of Hang Ten’s 982.3 million shares outstanding, a total purchase price of 2.65 billion Hong Kong dollars, or $340.6 million at current exchange.

Hang Ten has about 790 stores in Asia under the Hang Ten, H&T and Arnold Palmer brands. The surf-inspired Hang Ten brand is also sold at Kohl’s Corp., a major client of Li & Fung’s sourcing arm.

The offer, laid out in a joint regularity filing from the firms, still requires government approval and represents a 58.8 percent premium over Hang Ten’s most recent close on the Hong Kong Stock Exchange.

Trading in Hang Ten was suspended at 1.70 Hong Kong dollars, or 22 cents, pending word of the takeover offer.

Shares of Li & Fung’s sourcing arm, Li & Fung Ltd., which also trade in Hong Kong, slipped 3.1 percent to 14.26 Hong Kong dollars, or $1.83.

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