Li & Fung in Hong Kong said the company’s independent shareholders
overwhelmingly approved its plans to buy logistics company Integrated
Distribution Services Group Ltd. The Hong Kong-listed blue chip said
that 99.8% of the shareholder votes in a special meeting Monday were
cast in favor of the deal, which is valued at US$897 million.
The figure, although massive, is not that surprising. Li & Fung is
32.96% owned by Hong Kong’s Fung family, which also has a 44.94% stake
in IDS. And the Fung family has opted to swap its IDS stake for Li &
Fung shares.
According to the Wall Street Journal most of IDS’ clients and revenue
base are in Asia, especially China.