Li & Fung to source for Li Ning brand (Hong Kong)

Hong Kong-based multinational Li & Fung Limited, the global consumer goods exporter, announced it will become a sourcing agent for Li Ning Company Limited’s brands in both international and domestic market.

The agreement will cover sourcing for a certain range of brands in both international and domestic China market, including soft goods for Li Ning’s popular running, basketball and lifestyle lines.

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “We are very pleased to source for many of Li Ning’s highly popular sports brands in China. Clearly, China has already become a huge consumer market that continues to expand and offer tremendous opportunities. This represents not only another world-class addition to Li & Fung's existing customer base, but also a significant step forward in our growth strategy for the LF Asia platform."

Li & Fung also announced the election results for the cancellation consideration of its acquisition of Integrated Distribution Services Group Limited (“IDS”).

Elections had been made by the Scheme Shareholders for the Share Alternative in respect of a total of 334,563,107 Scheme Shares, representing 99.02% of the total number of Scheme Shares. The other Scheme Shareholders, holding a total of 3,315,493 IDS Shares and representing 0.98% of the total number of Scheme Shares, will receive the Cash Alternative.

Mr. Rockowitz said, “We are very pleased with the vote of confidence as shareholders of 99.02% of IDS shares have elected to take up Li & Fung shares.”

A total of 195,719,417 new shares, representing 5.12% of the total issued shares of Li & Fung as at November 3, 2010, will be allotted and issued in satisfaction of the Share Alternative. The total amount of cash consideration to be paid by Li & Fung to the Scheme Shareholders who have elected for the Cash Alternative is approximately HK$69,625,353.

With the result of the election clear, Mr. Rockowitz added, "With substantial cash reserves even after the IDS acquisition we will be able to take full advantage of any opportunities that may arise."

source:Li & Fung Limited