O’Melveny Represents Investors in Precursor to Spin-Off Transaction

May 11, 2011



Julie Fei                                               Andrea Rodeschini

O’Melveny & Myers LLP                           O’Melveny & Myers LLP

413.230.7792                                         212.326.2251

jfei@omm.com                                       arodeschini@omm.com



HONG KONG ─ MAY 09, 2011 ─ O’Melveny & Myers LLP represented a consortium of investors led by FountainVest Partners and Spring Capital Asia in a US$41 million equity investment in ENZO Jewelry (ENZO), a subsidiary of its Nasdaq-listed parent, LJ International, Inc., a global wholesaler and branded retailer of jewelry.  The transaction closed in the second quarter of 2011.  At the closing, the investors acquired 28 percent of ENZO’s total issued share capital and will also have the right to make further investments of approximately US$26 million to acquire up to an additional 10.35 percent of ENZO. 


The transaction was led by Hong Kong-based partner Doug Freeman, counsel Victor Chen and Nima Amini, and was supported by various members in Hong Kong and New York who advised on tax issues and US securities litigation.


FountainVest Partners is one of the largest private equity funds dedicated to investing in China, focusing on private enterprise sector companies led by strong management teams.


Spring Capital Asia is an independent private equity firm that invests exclusively in China and is one of the leading growth investors in Chinese companies operating in the lower mid-market.


LJ International Inc. (LJI) (NASDAQ: JADE) is engaged in the designing, branding, marketing and distribution of a full range of jewelry. It has built its global business on a vertical integration strategy and an unwavering commitment to quality and service. Through its ENZO stores, LJI is now a major presence in China’s fast-growing retail jewelry market. As a wholesaler, it distributes to fine jewelers, department stores, national jewelry chains, and electronic and specialty retailers throughout North America and Western Europe. Its product lines incorporate all major categories, including earrings, necklaces, pendants, rings, and bracelets.

To speak with a partner in the Asia M&A for more information and to arrange an interview, please contact Julie Fei or Andrea Rodeschini at the email addresses or phone numbers listed above.

About O'Melveny & Myers LLP Asia M&A Practice

The Asia Mergers and Acquisitions practice is a leader in advising international and Asian clients from a diverse range of industry sectors. We represent our clients on their most complex cross-border acquisitions and divestitures, leveraged transactions, management buyouts, joint ventures and other significant investments.  O'Melveny is regularly recognized as among the very best M&A practices in Asia.  Chambers Asia Pacific 2011 recognizes O'Melveny by name for its M&A/corporate practices in China, Hong Kong, Singapore, and Japan, as well Asia-wide, and that the group "is commended for its expertise in private equity and venture capital matters, and is also active on behalf of a growing number of PRC companies in cross-border, outbound M&A, in addition to advising private equity and multinational companies on M&A and investments into China."

About O’Melveny & Myers LLP
With approximately 900 lawyers in 14 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession.

About O’Melveny & Myers LLP Asia Practice
O'Melveny began its practice in Asia nearly 25 years ago, and over this time we have become one of the most respected and full service legal service providers in the region.  The firm maintains large offices in the most important political and commercial centers of Beijing, Shanghai, Hong Kong, Singapore, and Tokyo.  Most of our lawyers are native to the region, understand the local law and business practices, speak the local languages and, most importantly, function as an integrated team that taps the firm's vast resources in Asia and globally, delivering value and expediency to its clients.  The China practice is widely and frequently recognized as one of the strongest on the market.  The Japan practice has been recommended by The Legal 500 and Chambers Global for corporate, mergers and acquisitions, and dispute resolution work.  Our newest office in Singapore, opened in 2008, has grown rapidly and is a hub for corporate, finance and private equity work for the entire South and Southeast Asia region. 

For more information, please visit www.omm.com.