Bloomberg News

Li & Fung Said Set to Price New Shares at HK$18.62 Each

March 27, 2012

Li & Fung Ltd. (494), the world’s largest supplier of clothes and toys to retailers, is set to price the shares in its secondary offering at HK$18.62 each, said two people with knowledge of the matter.

The people declined to be identified because the details are private. Hong Kong-based Li & Fung was planning to raise about $500 million selling shares at HK$18.52 to HK$18.82 apiece, according to terms for the transaction obtained by Bloomberg News. Li & Fung planned to use the money for “future business development and acquisitions,” according to the document.

Li & Fung is raising money after reporting a 24 percent increase in 2011 profit last week and saying it may make more deals. The company increased earnings by acquiring rivals and entering into supply agreements to sell American and European retailers consumer goods that are mostly made in Asian countries, such as China and Thailand.

A message left at the company’s New York office wasn’t immediately returned. The stock closed at HK$19.60 yesterday in Hong Kong trading.

The company sees acquisition opportunities in areas such as beauty and health care, Deputy Chairman William Fung said in an interview last week.

“When things are not looking good in the world in general, it’s probably good for opportunities,” Fung said at the time. “Our primary focus would be the markets we sell to, the U.S. and Europe. Europe is not looking very good, there may be opportunities.”

Li & Fung surged on March 23 after the earnings report and the stock is now up 36 percent for the year compared with 14 percent for the benchmark Hang Seng Index. (11)

To contact the reporter on this story: Zijing Wu in London at zwu17@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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