Li & Fung (00494) said it agreed to dispose of the distribution business to Dah Chong Hong Holdings (DCH) (01828) for US$350 million (on a cash-free and debt-free basis and subject to closing adjustments).
Upon completion, LF Distribution Holding Limited will cease to be a subsidiary of Li & Fung.
The target group is principally engaged in distribution of consumer and healthcare products across Asia. It has been operating in geographical areas including the PRC, Hong Kong, Macau, Taiwan, Thailand, Malaysia, Singapore, Philippines, Indonesia and Brunei.
Li & Fung estimates that the net potential gain on the divestment will be about US$10 million. The proceeds are intended to be used by the Group for working capital and to further improve and strengthen its capital structure.
03/05/2016 16:32
Li & Fung to sell distribution business to DCH for US$350m
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