Golden Lincoln Holdings, an entity formed by Li & Fung's controlling shareholders and Singaporean warehousing and logistics firm GLP, proposed to buy out Li & Fung's controlling shareholders for HK$1.25 per share, the company said in a filing to the Hong Kong Stock Exchange.

The deal values the company at around $1.4 billion.

The price is about 72.7% over the company's average closing price in the last 60 days and more than double its Friday close of HK$0.50 apiece.

The buyer will pay about HK$7.22 billion ($931 million) in cash for the deal, and will not increase the price, according to the filing.

(Reporting by Kane Wu; Editing by Kim Coghill)