","position":5,"name":"Comment","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/comment"}}]}]17:T767,Staff reporter

Minority shareholders of Li & Fung have asked the Securities and Futures Commission to investigate the Hong Kong-based supply chain manager's HK$7.2 billion privatization deal last year after its logistic unit was sold for about HK$28.08 billion last week, four times the amount of the buy-out.

Container shipping giant Maersk last week agreed to buy Hong Kong-based LF Logistics in an all-cash deal that will add hundreds of warehouses in Asia and help it expand beyond its core ocean freight business.

The consideration of the deal suggested that the takeover valuation was severely low, hurting the interest of minority shareholders, a representative of a shareholder right and benefits monitoring group said.

A union consisting of a dozen minority shareholders who were against Li & Fung's privatization requested the SFC to look into the deal's independent financial adviser Platinum Securities and also that Maersk should put off the transaction with Li & Fung until the results of the investigation are out.

They also asked Li & Fund to apologize and make compensation.

The union said that it has got in touch with Maersk's headquarters, warning of the regulatory and also the ethical risks, and has received a response via email.

Singapore's Temasek Holdings brought 21.70 percent of stake in LF Logistics at around US$300 million (HK$2.34 billion) in 2019.

The minority group is calling for an SFC investigation. SING TAO

Short-changed, say Li & Fung minority citing Maersk deal