Supplier Li & Fung is spinning off Global Brands Group – which holds licences for brands including Calvin Klein and Tommy Hilfiger – as a separate publicly listed company on Hong Kong’s stock exchange.
Global Brands has licences for 350 ranges, the majority of which are character brands for children’s entertainment companies Disney and Nickelodeon, but also include the likes of Juicy Couture and Michael Kors.
Last week, Li & Fung said its listing application to create a distinct consumer brands and licensing business was being reviewed by the Hong Kong stock exchange. It is expected to be approved within three months.
Li & Fung chief executive Bruce Rockowitz will become head of Global Brands. Rockowitz said the new business would focus primarily on helping US brands expand their reach into Asia.
While 80% of the brands under the Global Brands umbrella hail from the US, “the aspiration is to eventually include more international brands” a spokesman added.
Li & Fung will not raise any new capital through the listing. Shareholders will instead receive one Global Brands share for every share they own in Li & Fung.
Chief operating officer Spencer Fung, son of honorary chairman Victor Fung and nephew of group chairman William Fung, will replace Rockowitz as chief executive at the 108-year-old supplier.
In a statement, Li & Fung said: “Each company will have enhanced financial flexibility when running the different businesses, which have distinct capital allocation needs.”