Article: HONG KONG'S LI & FUNG TO ACQUIRE COLBY GROUP HOLDINGS.

HONG KONG, Nov 9 Asia Pulse - Hong Kong-based export trading house Li & Fung Limited (SEHK: 494) signed a sale and purchase agreement Wednesday to acquire buying agent Colby Group Holdings Limited.

In a statement, Li & Fung said the consideration consists of a payment of HK$247.5 million (US$31.73 million) in cash and an issue of 113.2 million new Li & Fung shares (equivalent to 3.95 percent of the enlarged share capital) at HK$17.25 each. The issue price represents a premium of 14 percent to yesterday's closing price of HK$15.15. The total consideration comes to approximately HK$2.2 billion, and is equivalent to approximately 16.35 times Colby's projected ...

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