Chow Tai Fook Jewellery Group Limited’s Investment in New Cutting Edge Limited

Eversheds Sutherland advised Chow Tai Fook Jewellery Group Limited on the deal.

Chow Tai Fook Jewellery Group Limited (CTFJG) invested in New Cutting Edge Limited (NCE), a company principally engaging in the development and provision of deep technology and solutions. These include but is not limited to nanofabrication technology, material analysis technology, production automation, retail automation and data analytics, and advanced technology, that create and maximise values of diamonds of different forms and sizes which are applicable to, among other markets, the diamond and jewellery market.

The deal was announced by CTFJG on 23 November 2021.

The deal involves, among others, the acquisition of a 40% interest in NCE by a subsidiary of CTFJG from the seller at a consideration of HK$40 million, and the capitalisation (the Loan Capitalisation) of outstanding shareholders’ loan in the amount of HK$740 million owed by NCE to the seller into preference shares to be issued by NCE to the seller. Completion of the Acquisition and the Loan Capitalisation will take place simultaneously on 31 December 2021, or such other date as may be agreed among the parties.

CTFJG is listed on the Main Board of the Stock Exchange of Hong Kong (HKSE: 1929) and is one of the largest jewellers in the world principally engaged in the business of manufacturing and selling of high-end luxury, mass luxury and youth line jewellery products. including gem-set, platinum, karat gold jewellery and gold jewellery and products.

Rothschild & Co Hong Kong Limited acts as the financial adviser to CTFJG in connection with its investment in NCE.

Stephen Mok (PIcture), Head of Corporate Asia, led the transaction with assistance from Of Counsel Sin Joh Chuang. They were supported by Associates Alvin So and Jasmine Xu, and trainee Emily Ha.

Involved fees earner: Sin Joh Chuang – Eversheds Sutherland; Stephen Mok – Eversheds Sutherland; Alvin So – Eversheds Sutherland; Jasmine Xu – Eversheds Sutherland;

Law Firms: Eversheds Sutherland;

Clients: Chow Tai Fook Jewellery Group Limited;

Giulia Di Palma

Author: Giulia Di Palma