Singapore-based investment company Temasek is spending US $300 million to take a 21.7 per cent stake in LF Logistics, Li & Fung’s logistics operation.
As a result, a planned spin-off IPO of LF Logistics has been postponed indefinitely.
Hong Kong-based Li & Fung set out plans to float the business in August 2018, saying this would enable it to accelerate its growth.
The Temasek investment values LF Logistics at $1.4 billion. Li & Fung will retain a controlling 78.3 per cent stake in LF Logistics.
Joseph Phi, group president of Li & Fung said: “We expect the strong growth of LF Logistics to continue. With operations in all of Asia’s fastest growing cities, we are well positioned to capitalize on rising middle class consumption and our early investment in e-logistics allows us to enjoy first-mover advantage. Our logistics strength combined with Li & Fung’s sourcing and new digital supply chain solutions, represents a unique end-to-end offering that encompasses the entire value chain.”