Li & Fung's parent eyes $1 bln retail spinoff -paper

HONG KONG, March 17 (Reuters) - Li & Fung Group, parent of retail supplier Li & Fung (0494.HK: Quote, Profile, Research, Stock Buzz), planned to raise about US$1 billion by seeking a separate listing of its privately held mainland and Asia Pacific retail business, a Hong Kong newspaper reported on Monday.

The South China Morning Post cited market sources as saying Li & Fung Group, which is owned by the Fung family, aimed to spin off its retail business and list it on the Hong Kong bourse later in 2008, and JP Morgan had been mandated to handle the deal.

The paper gave no further listing details but said the unlisted assets currently held by the parent include Toys'R'Us, which has 49 outlets across Asia.

The parent also holds Branded Lifestyle, which operates retail outlets in the China region, South Korea, Singapore, Malaysia, Thailand and Indonesia, with units representing brands such as Calvin Klein Jeans, women wear retailer Mango and beachwear retailer Billabong. (US$1=HK$7.8) (Reporting by Donny Kwok)