Li & Fung disappoints small investors

Minority shareholders attending Li & Fung's (0494) annual general meeting have mixed views of the consumer goods supplier’s privatization plan, while group chief executive Spencer Fung apologized to investors who suffered losses.

Chairman William Fung Kwok-lun said buying other stocks could generate higher returns than investing in Li & Fung.

Many small investors bought the stock for the dividend to cover living expenses after retirement. They say the offer price of HK$1.25 is too low for them.

A shareholder, who holds 200,000 shares, lost HK$3 million since he started to buy the stock in 2010.

The stock has fallen by more than 95 percent from its high of HK$25.98 in 2011. Shares of Li & Fung added 3.42 percent to HK$1.21 today.