SINGAPORE: Dahlia Investments, an indirect subsidiary of Temasek, has agreed to acquire 21.7 percent shares of LF Logistics for a cash consideration of $300 million. LF Logistics is a wholly owned subsidiary of Li & Fung Limited.
The investment values Li & Fung’s logistics business at approximately US$1.4 billion on a post-money equity valuation basis. The Investment is subject to customary regulatory approvals, and upon completion, LF Logistics will remain a subsidiary of the company.
Proceeds from the investment, will be used to fund future capital expenditures, repay existing bank facilities, and accelerate business growth initiatives at LF Logistics. The Board believes that the investment would allow the company to unlock the value of LF Logistics and accelerate its business growth, as well as further enhance the capital structure and the financial flexibility of the Group.
Li & Fung Group is recognised as the world’s leader in consumer goods design, development, sourcing and logistics. It specializes in responsibly managing supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide.
The Group is focused on building the supply chain of the future and accelerating the speed in the supply chain through the development of its digital platform. LF Logistics, which is the holding company of certain subsidiaries of the company, is a high growth pan-Asian logistics service provider focused on serving the growing consumption-led markets in the region.
LF Logistics operates two distinct but integrated segments, namely the pan-Asiain-country logistics business segment and the global freight management business segment