A corporate venturing fund backed by the world’s biggest luxury goods group has backed its second second Asian watch maker in the past year.
LVMH Moet Hennessy Louis Vuitton’s $500m L Capital Asia fund launched last year has acquired HK$240m ($31m) worth of convertible bonds and warrants in Emperor Watch & Jewellery.
If the financial instruments are exercised by 2013, L Capital will have 6.9% of the Hong Kong-based luxury retailer. L Capital is buying HK$140m convertible bonds that can be converted into 259,259,259 shares at HK$0.54 each and taking HK$100m of warrants that can convert to 161,290,322 shares at HK$0.62 per share.
Ravinder Thakran, managing partner of L Capital Asia and group director of South Asia, South East Asia and the Middle East, at LVMH Group, said: "Emperor Watch and Jewellery is the number one player in Hong Kong, one of the world’s most developed watch markets."
L Capital Asia’s other investments are two Singapore-based companies: Sincere, a watch retailer in which it bought 26.3% after an offer made in December, and shoes company Charles & Keith. Thakran owns 2.7% of the investment vehicle that bought its portion of the Sincere shares with L Capital Asia, LVMH’s third fund that invests in emerging luxury goods companies in Asia, the remainder.