Shanghai Yuyuan Tourist Mart (Group) Co., Ltd (Yuyuan Inc), a unit of Chinese conglomerate Fosun International Limited, has announced plans to pick up a 55.4 per cent stake in French jewellery brand Djula, for 210 million yuan ($30 million), according to local media.
The deal follows Yuyuan’s 2018 acquisition of an 80 per cent holding in Belgium-based diamond certifier International Gemological Institute for $108.8 million. The move is in line with Yuyuan’s strategic expansion plans in the global jewellery industry to develop an affordable luxury business.
The Paris-based Djula was founded by French designer Alexandre Corrot in 1994. It offers modern variants of vintage jewels and targets a millennial demographic.
In addition to Djula, Yuyuan is set to buy out real estate developer Nanjing Fudi Dongjun Property Co.Ltd (also known as Forte), acquiring a 32% stake. Currently the largest shareholder in the company with a 68% stake, Yuyuan will pay as much as 842 million yuan ($119 million), per a company filing with Shanghai Stock Exchange on Tuesday.
Post the deal, Yuyuan will continue to provide real estate, targeted at an emerging middle class. Established in 1987, Yuyuan operates in the lifestyle and entertainment verticals, covering jewellery, medicine, retail, restaurants, shopping malls, grocery stores, real estate, foreign trade and financial investment. The company has an aggregate of 16 sub-brands.
Fosun International made two tranches of investments in Yuyuan in 2018 and 2019 respectively. Recently, Fosun became the controlling shareholder in Yuyuan, owning about 70 per cent stake in it.
The company went public in Shanghai in 1992. As of March 20, its market value was at 27 billion yuan ($3.8 billion).
Before the current acquisitions, in 2019, Yuyuan completed its buyout equity in a portfolio of companies including Chinese watch brand Sea-Gull (65%), real estate focused investment management firm Star Capital (100%), edible fungi biotechnology company Ruyiqing Biotechnology (55.5%), and German lifestyle clothing company Tom Tailor (29.99%).