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Li & Fung delists from Hong Kong’s bourse after 28 years as supply chain manager is privatised while global trade roils
- Shares of Li & Fung were delisted today
- The majority of shareholders agreed at a May 12 meeting for Li & Fung’s controlling shareholders to take the company private, at HK$1.25 a share
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The curtain came down on the publicly traded shares of Li & Fung Limited after 28 years on the Hong Kong stock exchange, as the century-old supply chain manager and logistics company is privatised by a consortium including its controlling shareholders.
Shares of Li & Fung, which rose 2.5 per cent to HK$1.24 two days before their May 15 trading halt, were delisted today from the local exchange, closing another chapter in the 114-year-old company’s history. The stock was listed in Hong Kong in July 1992.
“Today marks the start of a new journey for Li & Fung as we focus on achieving a fundamental transformation of our business,” said chief executive Spencer Fung, the great-grandson of Li & Fung’s founder in a statement. “Our commitment to our retail and supply chain partners remains as strong as ever.”
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The privatisation of Li & Fung, which made its fortunes as the middle man between mainland China’s factories and the world’s consumers, highlights Hong Kong’s struggle to redefine its strategic role as technology and smartphone-enabled online shopping upended bricks-and-mortar commerce.
More recently, the city’s status as the staging ground for China has also been shaken as the US-China trade war tore global supply chains asunder. The global economic havoc wreaked by the coronavirus pandemic has also pushed many manufacturers to replace their just-in-time supply chains with a multitude of just-in-case alternatives to hedge against any disruptions from putting every egg in one basket.
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