South Africa-based Anglo American Corp has decided to cash out on most of its 13.5 per cent stake in Li & Fung after holding the investment for 15 years.
In a move that helps the world's largest mining company restructure its core business, Anglo American yesterday agreed to sell 69 million Li & Fung shares - or 5 per cent of the company - to institutional investors for HK$2.26 billion.
The placement price of HK$32.75 a share represented a 7.5 per cent discount to yesterday's closing price of Hong Kong's largest trading house at HK$35.40.
To dispose of its remaining 8.5 per cent holding, the London-listed company yesterday struck a complex arrangement with Li & Fung (1937) - the holding company of Li & Fung - under which it will sell 117 million shares in two transactions at an undisclosed price.
The holding company is controlled by brothers Victor Fung Kwok-king and William Fung Kwok-lun.
In one transaction, the holding company will increase its stake in Li & Fung to 42.4 per cent from 38.1 per cent by acquiring 49.75 million shares.
Anglo American will also transfer a 4.9 per cent interest in Li & Fung, or 67.27 million shares, to a joint venture with the holding company for a lock-up period of three years.
