Exor Asia Forms a Partnership With Hong Kong Trading Firm
April 03, 2011
HONG KONG -- Exor Asia Ltd., one of Italy's largest business empires, has formed a strategic partnership with Li & Fung Ltd., a Hong Kong-based trading firm. On Friday, Exor, the direct investment arm of the Agnelli group, announced it had purchased a 4.8% stake in the Hong Kong trading firm for about 30 million U.S. dollars. The Agnelli group controls automotive manufacturer Fiat SpA, which had revenue of US$50 billion in 2010. Exor purchased the shares from the Fung family at seven Hong Kong dollars a share, or a 4.8% discount from their price of HK$7.35 (95 U.S. cents) on Friday at the Stock Exchange of Hong Kong. Albrecht Schaller, president of Exor, said the firm hoped this investment would be a prelude to joint investments with Li & Fung in Asia. Li & Fung, which had revenue of HK$2.81 billion for the six months ended March 12, 2011 an extensive distribution network in Asia and strong trading channels to the U.S. Mr. Schaller said the Agnelli group would help introduce Li & Fung to distribution channels in Europe, an area where Li & Fung has been weak. Exor, which makes investments both in listed and unlisted companies, has been investing in Asia for four years. Excluding its investment in Li & Fung, Exor has invested about US$100 million in the region. Its investments include a stake in Distacon Communications Ltd., a privately owned Hong Kong cellular-telephone operator and Guoco Group Ltd., which owns Hong Kong's third-largest bank, Dao Heng Bank Ltd.
