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By Wing-Gar Cheng - Aug 10, 2010 1:43 PM GMT+0200 Email Share Business Exchange Twitter Delicious Digg Facebook LinkedIn Newsvine Propeller Yahoo! Buzz Print Li & Fung Ltd., the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., may buy a Hong Kong-listed transportation affiliate 42 percent owned by its parent as it cuts costs. Li & Fung and the affiliate, Integrated Distribution Services Group Ltd., were suspended from trading pending an announcement of the “privatization” of IDS, the Hong Kong- based companies said in separate statements to the city’s stock exchange today. Li & Fung affiliates own a combined 42.2 percent of IDS, which has a market value of HK$5 billion ($644 million), according to Bloomberg data. Li & Fung has been acquiring rivals and signing supply agreements to help meet a sales target of $20 billion this year. The Hong Kong-listed supplier of Tommy Hilfiger clothing and Kate Spade bags may use IDS’s network inside China to supply retailers with imports from the West, said Matt Marsden, an equity researcher at Samsung Securities (Asia) Ltd. in Hong Kong. “It’s very exciting because it exposes the company to fast-growing Asian consumer market and it becomes a truly international sourcer east to west and west to east,” Marsden said by phone today. “Li & Fung will probably pay an acquisition premium.” Costs, Efficiency Li & Fung Managing Director William Fung in March said the company would continue drive its cost base down and increase cost efficiencies. The statements from IDS and Li & Fung today included no terms for the plan to de-list IDS. Li & Fung rose 5 percent to close at HK$37.70 yesterday, for a total market value of HK$143.8 billion. IDS gained 4.9 percent to HK$15.42.Li & Fung shares have climbed 17 percent this year, compared with a 1.3 percent drop in the Hang Seng Index. Katherine Wang of GolinHarris, the public relations agency hired by Li & Fung, declined to comment on the statement, saying she hasn’t received any further details from the company. The company in July announced three acquisitions and four licensing deals that may increase sales by $1 billion next year. It said July 8 that it paid $140 million to buy three companies; Jackel Group, with packaging, perfume and personal-care businesses, denim clothing company HTP Group, and Cipriani Accessories Inc., which it described as a designer, distributor and importer of accessories in the U.S., Canada and Mexico. Li & Fung Group was founded as a porcelain and silk trader in southern China in 1906 near the end of the Qing dynasty. To contact the reporter on this story: Wing-Gar Cheng in Hong Kong at wgcheng@bloomberg.net. |
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| aus der Diskussion: | Starker Rebound Li +Fung/ IPO Tochter |
| Autor (Datum des Eintrages): | binda (10.08.10 15:13:24) |
| Beitrag: | 20 von 28 (ID:39959068) |
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