This is in line with the group’s strategy to continue expanding its presence in the country
[SINGAPORE] Luxury watch retailer The Hour Glass announced on Monday (Apr 7) that its wholly owned subsidiary, The Hour Glass (Australia), is set to acquire newly incorporated SPV for A$90 million (S$72.4 million).
The Australian company’s principal activity is the retailing of watches and related products at the time of completion of the acquisition. The group will acquire 100 per cent of the issued and paid-up share capital of SPV, for SPV to be a wholly owned subsidiary of The Hour Glass (Australia).
On Monday, The Hour Glass said this move is in line with the group’s strategy to continue expanding its presence in Australia and strengthen its retail footprint.
Additionally, the deal is expected to provide both an enlarged client base and operating synergies to The Hour Glass (Australia)’s business.
For illustrative purposes and assuming that the acquisition was completed on Apr 1, 2023, earnings per share of the group would be S$0.2521, as compared to S$0.2387 for FY2024.
The deal is expected to be completed in the first half of the financial year ending Mar 31, 2026, and the purchase will be funded by internal resources and bank borrowings.
In November 2024, the group posted a 20 per cent drop in earnings to S$61.4 million for the first half of FY2025 ended Sep 30, from S$77 million the year before.
Higher operating expenses reportedly dragged profitability, in addition to increased advertising and promotional activities, depreciation of right-of-use assets and loss on disposal of property, plant and equipment driving expenses up.
Shares of The Hour Glass closed flat at S$1.55 before the announcement.
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