Li & Fung’s $1.1b divestment simplifies business

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

Li & Fung’s $1.1b divestment simplifies business

Supply chain manager Li Fung said on Thursday it has agreed to sell three product vertical businesses, namely furniture, sweaters and beauty, for $1.1 billion in cash.

The earnings of these three businesses are relatively volatile and have been underperforming the rest of the group, so the sale should remove a drag on the earnings and performance of the listed entity. 

The move is also in line with a broader simplification...

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