<article><p>Shares of Li &amp; Fung Ltd were set to open up 6.6 percent on Friday after the global exporter said it would divest its furniture, beauty and sweaters businesses for $1.1 billion.</p></article>

<p>Shares of Li &amp; Fung Ltd were set to open up 6.6 percent on Friday after the global exporter said it would divest its furniture, beauty and sweaters businesses for $1.1 billion.</p>
<p>The stock was set to open at HK$4.35, the highest open since May 2016. That compared to a 0.6 percent fall for the benchmark index.</p>
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<p>Li &amp; Fung said it would divest the furniture, beauty and sweaters businesses, which are still under margin pressure with declining profitability, to a consortium comprising major shareholder Fung Holdings (1937) Ltd and one of China’s top private equity firms, Hony Capital.</p>
<p>The company said it would pay a special dividend of $520 million to shareholders.</p>
<p>UBS maintains a “buy” rating on the stock, saying the divestment of a shrinking business will allow Li &amp; Fung to improve its capital structure and to focus on growth segments.</p>
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<p><strong>Also read:</strong></p>
<p><span style="color: #ff0000;"><strong><a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/li-fung-sells-distribution-unit-to-dch-for-350-million-39531/">Walmart supplier Li &amp; Fung sells distribution unit to DCH for $350m</a></strong></span></p>
<p><span style="color: #ff0000;"><strong><a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-wal-mart-supplier-li-fung-exploring-sale-asia-distribution-unit-300m-37333/">China: Wal-Mart supplier Li &amp; Fung exploring sale of Asia distribution unit for more than $300m</a></strong></span></p>
<p><strong>Reuters</strong></p>


Li & Fung said it would divest the furniture, beauty and sweaters businesses, which are still under margin pressure with declining profitability.

HK: Li & Fung to divest beauty, furniture biz to Hony Capital group for $1.1b

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HK: Li & Fung to divest beauty, furniture biz to Hony Capital group for $1.1b

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