Li & Fung’s spin-off Global Brands Group is now publicly listed on the Hong Kong Stock Exchange.
The listing was by way of a 100 per cent distribution in non cash form, with no capital market fundraising activities. Each Li & Fung shareholder received one Global Brands share for every share it owns in Li & Fung.
The intention to spin-off and list Global Brands as a separate publicly-listed entity was announced in March at the unveiling of the new Three-Year Plan. At that time, the company announced the reorganisation of the distribution network by aligning the private label business to the trading business and creating the new standalone Global Brands Group, which consists of the brands and licensing businesses.
The decision to spin-off and list Global Brands is a natural extension of this strategic realignment, says Li & Fung.
Spencer Fung assumed the role of CEO of Li & Fung on July 7, succeeding Bruce Rockowitz, who became CEO and vice chairman of Global Brands.
“While operating the businesses together provided a period of unprecedented growth, we are confident that this separation will provide even greater value for Li & Fung shareholders as we look to the future,” says William Fung, chairman of Li & Fung.
“The brands business of Global Brands will develop and grow independently and Li & Fung will continue to focus on its dominant sourcing and logistics businesses,” he adds.