Deal Gives WM Option for New Li & Fung entity
-- Home Textiles Today, 2/8/2010 12:00:00 AM
Hong Kong —
The Li & Fung souring deal with Wal-Mart Inc. gives the retailer the option to take ownership of WSG – the new operation that the trading company is establishing to provide global sourcing services for the WM account.
As part of the arrangement, Wal-Mart will have the right to require Li & Fung to transfer 100% of WSG’s shares to the retailer any time after Jan. 1, 2016, according to an announcement made by Li & Fung Ltd. today in Hong Kong.
Wal-Mart would not be required to pay a premium for the shares, and is not obliged to option them.
If under the rules of The Stock Exchange of Hong Kong, Wal-Mart’s options by that time require approval by shareholders, and if those shareholders failed to approve the transfer, Li & Fung would be obligated to pay the retailer a break fee. That few would be either $86 million US or 10% of WSG’s excise price, whichever is lower.
We would love your feedback!
Off-pricers keep up momentum through January
Walmart Canada unveils aggressive expansion plans for new fiscal year
Walmart promotes Foran to head Walmart China
Intertek, Fibre2Fashion align for apparel, textile global sourcing initiatives in South Asia
PCFC expands memory fiber product offerings with new bedding, mattress pad line
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
