Li & Fung sells non-core distribution business

The sale of three underperforming and volatile businesses could relieve a drag on the earnings of the listed entity.

The Hong Kong-listed supply chain manager prints an upsized $650 million perpetual non-call five bond, after attracting more than $4.4 billion of orders.

Li & Fung wants a separate listing for its Global Brands Group and is the latest Hong Kong family-owned business looking to unlock value this way.

The US banking giant’s infrastructure arm has agreed to acquire the Australian gas pipeline operator. In another deal, Aberdeen Investments and ACCIONA have set-up a SPV for a New Zealand motorway project.

Anders Svensson is joining the bank in Sydney from Morgan Stanley.

Li & Fung's $500 million perpetual suggests a large acquisition is ahead and reduces the likelihood of a near-term equity raising, analysts say.