LJ International to go private

LJ International, the coloured gemstone and diamond jeweller, is likely to go private after a proposal from its CEO and FountainVest.

LJ International has received a preliminary, non-binding proposal letter from Yu Chuan Yih, CEO of the company and Urban Prosperity Holding Limited, an affiliate of FountainVest Partners, to acquire all of the outstanding ordinary shares of the company at a proposed price of US$2 per ordinary share, in cash, subject to certain conditions.

Yih currently beneficially owns, in the aggregate, approximately 11 per cent of the company’s outstanding ordinary shares.

According to the proposal letter, the consortium members will form an acquisition vehicle for the purpose of pursuing the transaction and the acquisition is intended to be financed by equity capital from the consortium members.

LJ International is engaged in the designing, branding, marketing and distribution of its full range of jewellery. Through its China-based Enzo retail chain stores, LJ is now a major presence in China’s fast-growing retail jewellery market.

As a wholesaler, it distributes to fine jewellers, department stores, national jewellery chains and electronic and specialty retailers throughout North America and Western Europe.

GB

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