Li & Fung has offered to buy iconic surf apparel brand Hang Ten for about Hong Kong $2.7 billion ($350 mm), according to the Hong Kong Standard.
Li & Fung hopes the deal will help its retail arm enter the growing
segment of casual fashion apparel and boost its presence in key Asian
markets including China, Taiwan, South Korea and Southeast Asia.
Perfect Lead Investments, a unit of Li & Fung, announced the deal jointly with Hang Ten on Sunday. The offer of HK$2.7 per share is 58.82 percent above Hang Ten's share price of HK$1.7 before the company was suspended last Friday.
Li & Fung is offering HK$2.65 billion to acquire 982 million shares of Hang Ten. Primary clothing brands owned by Hang Ten include Arnold Palmer and H&T.
The deal has already received acceptance from 69.06 percent of Hang Ten shareholders and Li & Fung will delist the target if more than 90 percent of the shareholders say yes to the transaction, a source told Reuters. Major Hang Ten shareholders who have already given the green light to the deal include apparel maker and retailer YGM and investment holding firm AWSL.
