HONG KONG, May 5 (Reuters) - Consumer goods exporter Li & Fung Ltd (0494.HK) said on Tuesday 5 May it would sell $350 million in shares at a discount, raising capital to fund future business development and acquisitions.

Li & Fung Ltd

Li & Fung said its 30.13 percent controlling shareholder Li & Fung (1937) would buy 120.29 million new shares at HK$22.55 per share on completion of the sale of the same amount of existing shares at the same price to third party investors.

The issue price represents a 6.04 percent discount to the closing price of HK$24 on Monday 4 May. The placing is expected to be completed on May 12. Citigroup and Goldman Sachs are the placing agents.

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Last week, the consumer goods exporter said it expected to sign more outsourcing deals within months as cash-strapped retailers in the United States looked to cut costs in the economic downturn.

The outsourcing deals in 2009 could be similar in size to the one the company signed with fashion retailer Liz Claiborne Inc (LIZ.N) in Feb, Li & Fung president Bruce Rockowitz told Reuters. In 2009, Li & Fung could sign a similar number of outsourcing deals to the four signed last year, Rockowitz said.

Li & Fung shares rose 10.75 percent on Monday 4 May. (US$1=HK$7.75) (Reporting by Donny Kwok; Editing by Nick Macfie)