* Li & Fung to finalise size, pricing after book-building
* Li & Fung bonds to be listed in Singapore
* Li & Fung raising funds for overseas acquisitions
HONG KONG, Nov 1 Li & Fung Ltd, a
manager of supply chains for global retailers including Wal-Mart
Stores Inc and Target Corp, plans to raise funds
through U.S. dollar-denominated perpetual bonds to help fund
Li & Fung, which gets about 80 percent of its sales from
Europe and the United States, said it would finalise the size
and pricing of the bonds after a book-building process.
The securities would be listed on the Singapore stock
exchange, the company said in a statement on Thursday.
Li & Fung is halfway through an ambitious three-year growth
plan that aims to expand its profit partly through purchases of
overseas assets. The company last month appointed Ed Lam, who
previously headed Citigroup Inc's Hong Kong investment and
banking division, as its chief financial officer to help advise
the company on acquisitions, fund-raising and trade finance.
First-half core operating profit slumped 22 percent to $221
million, hit by sluggish demand from its key markets. The drop
has prompted some analysts to question whether the company's
acquisition-led business model still works and to wonder where
it will get its future acquisition funding from.
Last month, a source said Li & Fung was in advanced talks to
buy Synergies Worldwide, a small New York-based supplier, to
help the Hong Kong company gain a better foothold in the fast
fashion and discount clothing space - the two segments that have
been doing well in the brittle economy in the United States.
Suppliers like Li & Fung and Synergies act as middle men,
working with manufacturers of apparel, toys and furniture to
manage the flow of products to retailers.
Citigroup Global Markets Ltd and The Hongkong and Shanghai
Banking Corp Ltd are the joint lead managers for the offering.