Parkson buys 50 per cent of watch retailer Watatime

Parkson buys 50 per cent of watch retailer Watatime

PETALING JAYA - Parkson Holdings Bhd has acquired 50 per cent equity interest in watch retailer Watatime Group for a total cash consideration of RM15 million (S$5.7 million). Parkson has the option to increase its stake by another 20 per cent for RM8.2mil.

"The call option is exercisable within an option period of one year commencing immediately after the fifth anniversary of the put and call option agreement,'' Parkson said in statement to Bursa Malaysia yesterday.

The indicative call option fee was set at RM3.2mil.

The supermarket chain store operator, through its unit Corporate Code Sdn Bhd yesterday has entered into a share sale agreement with Yong Chon Hua and Fong Sau Ying for their entire equity interest in the Watatime Group of companies, save for Watatime (Subang) Sdn Bhd and Watatime (M) Sdn Bhd for which Corporate Code acquired 31.07 per cent and 39.42 per cent respectively.

The remaining 50 per cent stake in Watatime Group is held by W Time Sdn Bhd.

Assuming that Parkson exercise its call option and raised its shares in Watatime Group to 70 per cent, then W Time Sdn Bhd has the "put option" to require the company to buy off the remaining 30 per cent stake it held in Watatime for the price equal to the net tangible assets the group as at the end of the month immediately preceding the exercise of the put option.

Watatime Group has a total of 13 retail outlets in prime shopping malls in Malaysia. Its wholesale division is to carry out the business as wholesalers of watches.

"The acquisition of a luxury watch segment retailer with the most number of outlets in Malaysia will complement the existing range of merchandise including fashion and lifestyle products offered by the Parkson Group," it said.

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