Li & Fung completes delisting
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Hong Kong-headquartered supply-chain solutions company Li & Fung formally delist this afternoon (May 27) ending a 28-year tenure as a public company.
The family that founded the company 114 years ago will retain effective control of the business holding 60 percent of the voting shares. However Singapore-based warehousing and logistics company GLP will hold 100 percent of the non-voting shares, giving it an effective 67.67 percent financial ownership of the business.
“We move forward with the next chapter of our transformation as a private business while maintaining our commitment to our staff, customers, suppliers, business partners, and the community of Hong Kong, who have together served as the foundation of Li & Fung for the past 114 years,” said Li & Fung group chairman Spencer Fung in a statement.
Group CEO Spencer Fung described today as “the start of a new journey” for the company as it focuses on achieving a fundamental transformation of the business.
“While there will be challenges to manage, Li & Fung will benefit greatly from our partnership with GLP. Our commitment to our retail and supply-chain partners remains as strong as ever.”
He said the company would continue to transform the business, which operates a sourcing and production platform in 50 countries, to meet “ever-changing consumer demands in a complex global environment”.
GLP co-founder and CEO Ming Mei said the two companies share a vision to create the digital supply chain of the future.
“I am confident that with its commitment to long-term transformation, Li & Fung will build upon its position as the global retail supply chain leader. I also look forward to exploring the areas where we can deepen our partnership and develop shared opportunities between logistics networks and technology innovation for our customers.”
The delisting formally occurs at 4pm Wednesday (May 27) and Li & Fung says checks to shareholders would be sent out on or before June 1.
GLP, described as “a leading global investment manager and business builder in logistics, real estate, infrastructure, finance, and related technologies” operates in Brazil, China, Europe, China, INdia, Japan and the US with some US$89 billion in assets under management in real estate and private equity funds.
Questions & Answers
Q.Which entity now holds the majority financial ownership of Li & Fung after the delisting?
Which entity now holds the majority financial ownership of Li & Fung after the delisting?
Singapore-based warehousing and logistics company GLP now holds 100 percent of the non-voting shares. This gives GLP an effective 67.67 percent financial ownership of the business.
Q.What is the future plan for the company according to its leadership?
What is the future plan for the company according to its leadership?
Li & Fung plans to continue its transformation as a private business, focusing on meeting ever-changing consumer demands. It aims to build a digital supply chain for the future with GLP's partnership.
Q.What role will the founding family play in the delisted company?
What role will the founding family play in the delisted company?
The family that founded Li & Fung will retain effective control of the business. They will hold 60 percent of the voting shares in the private company.
Q.Where does GLP, the new partner, operate and what is its primary focus?
Where does GLP, the new partner, operate and what is its primary focus?
GLP operates in Brazil, China, Europe, India, Japan, and the US. It is a leading global investment manager and business builder in logistics, real estate, infrastructure, finance, and related technologies.
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