“The investment from Temasek will allow us to unlock the value of LF Logistics and accelerate its business growth,” Group CEO Spencer Fung said.
Shares in Li & Fung, which had suspended trading on Friday morning, jumped as much as 18.8% to HK$1.45, their highest since April 23.
Dahlia Investments, an indirect wholly owned unit of Temasek, has agreed to subscribe for the stake of LF Logistics, and the proceeds will be used to fund capital expenditures, repay existing bank facilities, and accelerate growth initiatives at the pan-Asian logistics service provider.
Li & Fung said the investment values its logistics business at US$1.4 billion.
The Hong Kong-based company said it would continue to be the controlling shareholder of the unit holding 78.3% on completion of the deal.
