Reference is made to the announcement of Li&Fung Limited dated 28 January 2010 in relation to the sourcing arrangements with the Wal-Mart Group.Capitalized terms used herein shall have the same meanings as those defined in the Previous Announcement unless the context requires otherwise.
The board of directors of the Company announces that on 20 September 2012,the Company and its wholly-owned subsidiary,Direct Sourcing Group Pte.Ltd.(DSG)entered into a new agency agreement with Wal-Mart Stores,Inc.that supersedes the previous buying agency agreements made on 28 January 2010.
At the same time,the Option Agreement pursuant to which Wal-Mart Stores,Inc.had the option exercisable on or after 1 January 2016 to purchase all of the shares of DSG was terminated.
Under the new agency agreement and related agreements,DSG will continue as the primary direct resource for Sam's Club in the United States and will continue to provide buying agency services to Walmart U.S.and certain Walmart International markets on a category-specific basis on terms similar to those under the previous buying agency agreements.
The new agency agreement will continue for a period of five years with an option to extend for an additional two years upon written mutual consent.