Swire Pacific Sells Three Trading Division Units

Swire Pacific Ltd. today announced that an agreement has been reached to sell two trading division subsidiaries, Swire & Maclaine Ltd. and Camberley Enterprises Ltd., to the Hong Kong-listed company Li & Fung Ltd. for a consideration of HK$450 million.

Separately, Swire Pacific has also confirmed that it has recently sold its interest in the US apparel retailer, The Eagle's Eye, through a management buyout. The sale resulted in a loss of HK$385 million largely reflecting goodwill written off to profit and loss on disposal.

Commenting on the sale of these businesses, Mr. Martin Cubbon, Group Finance Director of Swire Pacific, said, "The overall impact of these transactions on Swire Pacific's 1999 attributable profits will not be significant."

Swire & Maclaine specialises in the purchasing, quality assurance and export of apparel and general merchandise to international clients. Camberley is involved in the design and production of quality fashion clothing and home accessories for export to international markets.

"Both Swire & Maclaine and Camberley have solid operating track records. However, it was felt that both businesses would be able to grow more successfully in future as part of a group which is more closely focused on similar trading activities. We believe this is a positive move for both companies," Mr. Cubbon commented.

"The Eagle's Eye, our only retail apparel operation in the U.S., had suffered from very difficult trading conditions, and we decided to end our involvement in this business through a management buyout," he added.

All three companies being sold were wholly-owned subsidiaries of Swire Pacific.