Li & Fung unit firms link with US giant
The Fung family's retailing arm Li & Fung Retailing has expanded its co-operation with US toy retailer Toys 'R' Us in a move which could boost the company's listing plans.
Li & Fung Retailing said yesterday it had signed an agreement with Toys 'R' Us to form a joint-venture company which would buy the toy retailer's operations in Hong Kong, Taiwan, Singapore and Malaysia for an undisclosed sum.
The deal would allow Li & Fung Retailing to manage Toys 'R' Us' operations in Asia and help it expand in the mainland and in Southeast Asia, especially in Thailand and the Philippines.
The agreement will replace the existing co-operation between the two parties.
Sources close to the company said the latest move could provide a boost to rumoured efforts in recent years by the Fung brothers - Victor Fung Kwok-king and William Fung Kwok-lun - to take Li & Fung Retailing public.
The brothers are the largest shareholders in listed sourcing and export firm Li & Fung Ltd.
On top of its interest in Toys 'R' Us' Asian operations, Li & Fung Retailing has substantial interests in convenience store group Circle K, film processing and video rental chain Fotomax and arcade chain Fun Fun World.
