KUALA LUMPUR: Marco Holdings Bhd is taking over clock and watch retailer Time Galerie (M) Sdn Bhd (TGSB) for RM37.55 million.
The company entered into a share sale agreement with Giro Laksana Sdn Bhd and Lim Siew Sooi to acquire the remaining 59.61 per cent stake it does not own in TGSB.
Currently, TGSB has 56 retail outlets located in major shopping complexes and retail stores throughout Malaysia.
According to its filing with Bursa Malaysia Securities Bhd, the purchase price of RM37.55 million was arrived at on a willing-buyer-willing-seller basis, after taking into consideration, among others, the number of retail outlets owned by TGSB, the adjusted net assets of TGSB Group of RM33.44 million as at December 31, 2022 and the average profit after tax of TGSB Group for the past three years of RM5.8 million, and the future potential earnings and prospects of TGSB.
Marco acquired 40.39 per cent equity interest in TGSB for RM26.66 million in December 2018.
According to Marco's filing with Bursa Malaysia Securities, TGSB has declared dividends on four occasions since financial year ended December 31, 2018, totaling RM46 million. Marco's share of dividend totaled approximately RM18.6 million.
"The board believes that the proposed acquisition, which would make TGSB a wholly-owned subsidiary of Marco, would accord the group a stronger foothold in the retail segment for watches and clocks, enabling the management the opportunity to control and further grow the retail business which will complement the group's current distribution business for watches and clocks.
The Proposed Acquisition is expected to contribute positively to the group's future earnings and to enhance shareholders' value in the long term.
The acquisition, which will be funded by internally generated funds, is expected to be completed within 60 days from the date of execution of the agreement.