Li & Fung, a company dominated by the Fung family of Hong Kong, aims to expand its reach in the apparel market with a bid for Hang Ten.
Li & Fung has effectively offered HK$2.65 billion (US$340 million) for hang Ten, which represents a 59 per cent premium on the company’s stock price at the time.
Hang Ten is a Hong Kong-based investment company that designs, markets, retails and wholesales apparel and trademarks throughout Asia. The company owns about 790 retail stores under the brands Hang Ten, H&T and Arnold Palmer, located in Taiwan, South Korea, China, Singapore, Malaysia, Hong Kong and Macau.
“Hang Ten has retail networks in Greater China and South east Asia which can help boost Li & Fung’s presence in the region,” Kenneth Li, an analyst at Cinda Securities, told Bloomberg Businessweek in an interview.
The company also has interests in soft goods and hard goods in north America, Europe, Australasia, and Central and Latin America.
Li & Fung, founded in 1906, is a Hong Kong-based global trading group which supplies high-volume, time-sensitive consumer goods. Apparel comprises about two-thirds of the business which also sources hardgoods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods.
