Li & Fung Announces Completion of Investment in LF Logistics by Temasek
Li & Fung Limited (“Li & Fung,” “the Group,” or “the Company;” SEHK: 494), the world’s leading supply chain solutions partner for consumer brands and retailers, today announced the successful completion of US$300 million investment in LF Logistics by Temasek. This values LF Logistics at approximately US$1.4 billion. The investment will allow the Company to unlock the value of LF Logistics and accelerate its business growth, as well as enhancing Li & Fung’s capital structure and financial flexibility.
With the completion of the investment, LF Logistics is now 78.3% owned by Li & Fung, the controlling shareholder, and 21.7% owned by Temasek, the Singapore-headquartered investment company. Proceeds from the investment will be used to fund future capital expenditures, repay existing bank facilities and accelerate business growth initiatives at LF Logistics. As a result of this investment, the proposed spin-off IPO will be postponed until further notice.
Joseph Phi, Group President, Li & Fung said, “We are excited about the new chapter for LF Logistics following this investment to further accelerate our business growth. With operations in all of Asia’s fastest growing cities, we are well positioned to capitalize on the business opportunities brought by the rise of the Asian middle class, growth in e-commerce logistics, accelerated development in ASEAN, and our rapid expansion in new geographies including India.”
Spencer Fung, Group CEO, Li & Fung added, “The investment from Temasek represents a positive signal from the capital market on LF Logistics’ strong organic growth. Our logistics strength integrated with Li & Fung’s sourcing and new digital supply chain solutions represents a unique end-to-end offering that encompasses the entire value chain. Our solid cash position and liquidity will allow us to fund future growth and complete our transformation efforts, as we strive towards our Three-Year Plan goal of creating the Supply Chain of the Future.”