Li & Fung investors approve deal to delist Hong Kong trading house
Shareholders in century-old family-run business hit with big losses
Once a formidable middleman connecting retailers in the West with manufacturers in the East, Li & Fung’s business increasingly has been challenged by e-commerce, rising protectionism, and economic uncertainties amid the coronavirus. (Photo courtesy of Li & Fung)
HONG KONG -- Shareholders of Li & Fung, the world's largest sourcing company, on Tuesday gave the green light to a 7.2 billion Hong Kong-dollar ($928.9 million) proposal that will allow its founding family to take the company private during a difficult business environment.
The move will see the century-old business icon delist from the Hong Kong Stock Exchange, where it had its trading debut in 1973 and had been one of the most popular blue chip stocks among investors until it lost that status in 2017.