Li & Fung says in talks for deal related to distribution business

Global exporter Li & Fung Ltd said it was in talks with independent third parties regarding a "possible transaction" involving its consumer and healthcare distribution business.

"The company is evaluating strategic alternatives with respect to its Asia consumer and healthcare distribution businesses," chairman William Fung said in a filing to the Hong Kong stock exchange late on Wednesday.

The supplier to U.S. retailers including Wal-Mart, said the consumer and healthcare distribution businesses are a part of the business acquired by the company through the privatisation of Integrated Distribution Services Group Ltd in 2010, but no agreements have yet been reached.

Li & Fung is considering selling its consumer and healthcare distribution business in greater China and Southeast Asia in a deal worth as much as $400 million, according to a Bloomberg report.

Shares of Li & Fung rose 3.85 percent to close at their highest since March 15, outpacing a 3.19 percent rise in the benchmark index.