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HONG KONG, Sept 8 - Hong Kong-based consumer goods exporter Li & Fung Ltd said it would sell HK$3.9 billion (S$760 million) worth of new shares to a wholly-owned unit of Temasek Holdings, raising capital to fund acquisitions.
"We have no doubt that this strategic investment by Temasek will be of benefit to Li & Fung's activities in Asia and will further enhance us to take advantage of any acquisition opportunities that may arise in this economic environment," said group managing director William Fung in a statement.
The U.S.-focused exporter said late on Sunday that it would sell 168 million new shares, or 4.62 percent of its enlarged share capital, at HK$23.09 per share. This represented a 2.39 percent premium to the closing price of HK$22.55 on Friday.
Temasek has undertaken not to sell the shares for a period of 12 months after completion of the deal.
Li & Fung chairman Victor Fung said the company sometimes engaged in discussions "with different parties" on acquisition opportunities, but that no definite decisions had been made.
Shares of Li & Fung have fallen 28.4 percent so far in 2008, in line with a more than 28 percent fall in the blue chip Hang Seng Index.
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