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PR Newswire
22-03-2020, 09:48 AM
Hong Kong’s Fung family and Singapore’s GLP Group have made a HK$7.2 billion (US$928 million) offer to privatise 114-year-old global merchandise supply chain manager Li & Fung at a price premium of 150 per cent, as they seek to take advantage of the worst economic and stock market downturn in a decade caused by the coronavirus pandemic.
Golden Lincoln, controlled by Victor Fung Kwok-king and William Fung Kwok-lun, has teamed up with GLP, a global operator and investor in logistics, real estate, infrastructure and finance, for the privatisation. GLP will buy all the 5.78 billion shares not owned by the Fung family at HK$1.25 each. The family will not be buying any more Li & Fung shares.
“In light of global economic uncertainties, the company’s transformation will involve execution risk and the associated benefits will require a longer time to materialise,” chief executive Spencer Fung, who is also Victor Fung’s son, said in a filing to the Hong Kong stock exchange after market close on Friday. “The offerers believes that the transformation of the company will be more effectively implemented away from the public equity markets.”
https://www.scmp.com/business/article/30...manager-li
The offer price is not great if you have bought it a year or so ago. But it also shows that there are bargains in the market. So it is not necessary to try to predict "the bottom." If you think you are paying a bargain for an asset which will provide the long-term returns you expect, put your money down and don't worry if it does get cheaper.
Golden Lincoln, controlled by Victor Fung Kwok-king and William Fung Kwok-lun, has teamed up with GLP, a global operator and investor in logistics, real estate, infrastructure and finance, for the privatisation. GLP will buy all the 5.78 billion shares not owned by the Fung family at HK$1.25 each. The family will not be buying any more Li & Fung shares.
“In light of global economic uncertainties, the company’s transformation will involve execution risk and the associated benefits will require a longer time to materialise,” chief executive Spencer Fung, who is also Victor Fung’s son, said in a filing to the Hong Kong stock exchange after market close on Friday. “The offerers believes that the transformation of the company will be more effectively implemented away from the public equity markets.”
https://www.scmp.com/business/article/30...manager-li
The offer price is not great if you have bought it a year or so ago. But it also shows that there are bargains in the market. So it is not necessary to try to predict "the bottom." If you think you are paying a bargain for an asset which will provide the long-term returns you expect, put your money down and don't worry if it does get cheaper.