A company owned by Li & Fung Company (0494.HKG) has offered US$340.7 million to purchase apparel firm Hang Ten Group Holdings (0448.HKG), The Wall Street Journal reported. Hang Ten produces mass-market casual wear, with the bulk of its market in Taiwan and South Korea. Perfect Lead Investments, owned by the Fung family, offered HK$2.70 per share, 59% above Hang Ten’s closing price before the offer. The stock was suspended from trading on Friday pending the announcement, and was up 56% when trading resumed on Tuesday. YGM Trading (0375.HKG) and Taiwan’s Kung family have already agreed to sell 69% of Hang Ten to Perfect Lead. Li & Fung announced in August the purchase of children’s apparel company Fishman & Tobin, as well as accessory firm Crimzon Rose. Shares of Li & Fung have fallen 36% this year amid a slow recovery in the US and Europe, which accounts for 80% of the company’s revenue.
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