Li & Fung shareholders approve privatisation

The Scheme received significant support from shareholders: 97.14 per cent of the total number of shares voted by disinterested shareholders in person or by proxy at the Court Meeting were in favour of the Scheme. And all resolutions in relation to the Scheme were approved by the shareholders at the Court Meeting and the Special General Meeting.

“I am pleased that our shareholders are supportive of the privatisation proposal for Li & 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,” William Fung, Group Chairman of Li & Fung, said.

The Scheme remains subject to the fulfilment or waiver (as applicable) of certain conditions, including sanction by the Bermuda Court in the petition hearing on May 21, 2020.

A cancellation consideration of HK$ 1.25 per share in cash, representing a premium of 150 per cent to the stock last closing price before the announcement of the proposal for the privatisation on March 20, 2020, will be paid to company’s shareholders on or before June 1, 2020. Subsequent announcements will be made on the websites of Li & Fung and the Hong Kong Stock Exchange on the finalised dates pertaining to the expected timetable.

Following the privatisation of Li & Fung, the Fung Family will hold 60 per cent of the voting shares in the company and will retain control. GLP will hold the remaining 40 per cent of the voting shares and 100 per cent of the non-voting shares, resulting in an effective economic ownership of 67.67 per cent of Li & Fung.

"The company’s goal to create the Supply Chain of the Future remains more relevant than ever with the digital disruption to retail and the ongoing uncertainties of the US-China trade war, compounded by the dramatic impact of Covid-19 on retail supply chains. With the breadth and depth of its global sourcing and production platform, pan-Asia logistics network, and industry leading digital product development capabilities, Li & Fung is helping retailers and brands navigate a highly uncertain and everchanging global environment," the company said in a press release.

Fibre2Fashion News Desk (RKS)