<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Sounds like some HK FTrash had some stake in a toy factory and persuaded that butch to buy into it.
Li & Fung soars on Temasek buy
</TR><!-- headline one : end --><TR>Shares of Hong Kong firm rise 11% on news S'pore investment firm has taken $702m stake </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SHARES of Hong Kong firm Li & Fung rocketed yesterday on news that Temasek Holdings had taken a HK$3.88 billion (S$702.3 million) stake in the consumer goods supplier.
The stock rose 10.9 per cent to HK$25 in Hong Kong, its biggest jump since May 2004, according to Bloomberg. The shares also outstripped the surging Hang Seng Index, which rose 4.32 per cent.
Li & Fung announced on Sunday that Singapore's investment company would buy 168 million new shares at HK$23.09 each.
This was 2.4 per cent higher than the firm's HK$22.55 closing price on Friday. The deal would boost Temasek's stake in the company from 0.36 per cent to 4.62 per cent, according to a filing to the Hong Kong stock exchange.
Li & Fung group managing director William Fung said Temasek's investment would enable his firm to 'take advantage of any acquisition opportunities that may arise in this economic environment'.
Li & Fung is seeking to expand its product range and geographical diversification, and has embarked on a major buying spree.
It has already made six acquisitions this year totalling HK$2.5 billion, according to Bloomberg, including its largest and most recent US$330 million (S$466.4 million) takeover of Van Zeeland, a New York handbag importer.
Its recent deal with Li & Fung is Temasek's fourth investment so far this year, Bloomberg has reported. These include taking a 9.4 per cent stake in Merrill Lynch. Temasek is expected to raise its stake in the investment bank further to 14 per cent.
Temasek managing director of investment David Heng said Li & Fung had 'excellent potential', given its 'robust business model and impressive leadership and management'.
The acquisition is in line with Temasek's long-term strategy to find opportunities in companies and industries whose growth is fuelled by the increasing purchasing power of the middle class.
Li & Fung announced half-year profits of HK$1.3 billion, 18 per cent up on the previous year. Turnover for the six months ended June 30 was HK$47.3 billion, 25 per cent higher than last year.
Li & Fung, which employs more than 14,000 people in 80 offices worldwide, announced a three-year plan last March to expand sales to US$20 billion and reach a core operating profit of US$1 billion.
This year, it also announced new outsourcing deals with Toys 'R' Us and Timberland.
Li & Fung is the controlling shareholder and main export arm of the Li & Fung Group. [email protected]
Li & Fung soars on Temasek buy
</TR><!-- headline one : end --><TR>Shares of Hong Kong firm rise 11% on news S'pore investment firm has taken $702m stake </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SHARES of Hong Kong firm Li & Fung rocketed yesterday on news that Temasek Holdings had taken a HK$3.88 billion (S$702.3 million) stake in the consumer goods supplier.
The stock rose 10.9 per cent to HK$25 in Hong Kong, its biggest jump since May 2004, according to Bloomberg. The shares also outstripped the surging Hang Seng Index, which rose 4.32 per cent.
Li & Fung announced on Sunday that Singapore's investment company would buy 168 million new shares at HK$23.09 each.
This was 2.4 per cent higher than the firm's HK$22.55 closing price on Friday. The deal would boost Temasek's stake in the company from 0.36 per cent to 4.62 per cent, according to a filing to the Hong Kong stock exchange.
Li & Fung group managing director William Fung said Temasek's investment would enable his firm to 'take advantage of any acquisition opportunities that may arise in this economic environment'.
Li & Fung is seeking to expand its product range and geographical diversification, and has embarked on a major buying spree.
It has already made six acquisitions this year totalling HK$2.5 billion, according to Bloomberg, including its largest and most recent US$330 million (S$466.4 million) takeover of Van Zeeland, a New York handbag importer.
Its recent deal with Li & Fung is Temasek's fourth investment so far this year, Bloomberg has reported. These include taking a 9.4 per cent stake in Merrill Lynch. Temasek is expected to raise its stake in the investment bank further to 14 per cent.
Temasek managing director of investment David Heng said Li & Fung had 'excellent potential', given its 'robust business model and impressive leadership and management'.
The acquisition is in line with Temasek's long-term strategy to find opportunities in companies and industries whose growth is fuelled by the increasing purchasing power of the middle class.
Li & Fung announced half-year profits of HK$1.3 billion, 18 per cent up on the previous year. Turnover for the six months ended June 30 was HK$47.3 billion, 25 per cent higher than last year.
Li & Fung, which employs more than 14,000 people in 80 offices worldwide, announced a three-year plan last March to expand sales to US$20 billion and reach a core operating profit of US$1 billion.
This year, it also announced new outsourcing deals with Toys 'R' Us and Timberland.
Li & Fung is the controlling shareholder and main export arm of the Li & Fung Group. [email protected]
