Chinese ecommerce giant JD.com has announced that it will invest $100 million in Hing Kong-based supply chain manager and logistics company Li & Fung.
According to reports in the media, JD.com and Li & Fung will work together to accelerate the development of digital supply chain.
JD.com has subscribed for $100 million worth of Li & Fung’s newly issued shares at HK$1.25 each, the Hong Kong-based supply chain manager said in a statement.
In the statement, Li & Fung also said, “Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex. With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.”
Reportedly, the Fung family will retain 60 percent voting rights in the company. The deal is also expected to help the company increase its footprint in China.
Spencer Fung, Li & Fung’s chief executive and great-grandson of its founder, said in a statement, “Our goal to create the supply chain of the future and to improve the lives of one billion people in our global supply chain remains more relevant than ever in this turbulent world.”
Earlier this year, Li & Fung, which is one of the world’s oldest supply chain manager, delisted from the Hong Kong stock exchange following a privatisation by a consortium of investors, led by the Fung family and Singapore logistics assets investor GLP.