Emperor Watch and Jewellery Ltd said it has secured a unit of LVMH Moet Hennessy Louis Vuitton SA as a strategic investor as the Hong Kong-based watch and jewellery retailer eyes expansion.

In a filing to the Hong Kong stock exchange on Thursday, Emperor Watch said it would issue HK$240 million ($41.8 million) worth of warrants and convertible bonds to L Capital EWJ Cayman Ltd. On exercise of all the warrants and bonds, L Capital EWJ would hold about 7.46 pct of the enlarged share capital of the Hong Kong-listed company.

L Capital EWJ is an investment holding company owned by L Capital Asia LLC, a private equity fund advised by L Capital Advisors and sponsored by LVMH, a world leader in the luxury consumer goods market.

L Capital Asia is focused in investing in the consumer sector in emerging markets of Asia, particularly China and India.

Emperor Watch said L Capital Advisors would become a strategic partner advising the company in sales expansion, brand building, advertising, marketing, retail operations, human resources, distribution and cost management.

Emperor Watch also said it would issue HK$240 million worth of bonds to D.E. Shaw Valence Portfolios LLC, convertible into shares representing 7.85 percent of the company’s enlarged share capital.

D.E Shaw Valence is an affiliate of D.E. Shaw Composite Portfolios LLC, a member of technology developer D.E. Shaw Group. The Hong Kong-listed company said the proceeds from the bond and warrant issues would be used for working capital and for expansion of its retail network.

Shares of Emperor Watch have risen 33.33 percent so far this year, outperforming a 5.7 percent fall in the Hang Seng Index.