Global sourcing and logistics giant Li & Fung has been given the green light by shareholders to take the company private.
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).
Following the privatisation, the Fung family will hold 60% of the voting shares in the company
"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. Source:https://www.just-style.com/news/li-fung-privatisation-deal-gets-green-light_id138742.aspx