Li & Fung jumps 8.9 pct after Temasek takes stake

HONG KONG, Sept 8 (Reuters) - Shares of Hong Kong-based consumer goods exporter Li & Fung Ltd (0494.HK: Quote, Profile, Research, Stock Buzz) rose 8.87 percent on Monday after the exporter said it would sell HK$3.9 billion ($500 million) worth of new shares to Singapore's Temasek [TEM.UL].

Li & Fung shares were set to open HK$2 higher at HK$24.55 on Monday.

The U.S.-focused exporter said late on Sunday that it would sell 168 million new shares, or 4.62 percent of its enlarged share capital, to Temasek at HK$23.09 each. This represented a 2.39 percent premium to Friday's closing price of HK$22.55.

Temasek has undertaken not to sell the shares for a period of 12 months after completion of the deal.

Li & Fung said the proceeds would be used to fund acquisitions when opportunities arise.

Shares of Li & Fung have fallen 28.4 percent so far in 2008, in line with a more than 28 percent fall in the blue chip Hang Seng Index. (US$1=HK$7.8) (Reporting by Donny Kwok; editing by Jonathan Hopfner)