PETALING JAYA: Paragon Globe Bhd is disposing of a 20.25% stake in Time Galerie (M) Sdn Bhd for RM13.37 million, in line with its diversification into construction and property development.
Paragon told Bursa Malaysia that its wholly owned subsidiary Capital Leap Sdn Bhd had on November 9 entered into a share sale agreement with Marco Holdings Bhd for the disposal.
Marco is also buying an additional 20.14% stake from Mohtar Abdullah for RM13.29 million, bringing its shareholding in Time Galerie to 40.39% with a total purchase sum of RM26.66 million.
The principal activities of Time Galerie are retailing of watches, clocks, gifts and other accessories. It has 66 retail outlets located in major shopping malls and other retail stores throughout Malaysia.
For the last three financial years ended December 31, 2017, the average profit after tax of Time Galerie was RM6.62 million and its net assets as at December 31, 2017 was RM50.34 million.
Paragon said the group intends to streamline its assets and allocate its financial resources for development activities, with the aim to deliver near term profit and value to shareholders.
“With the disposal of the sale shares, the company is able to realise its investment and the cash to be freed up will be used to fund present construction and development activities of the group.”
Source: The Sun Daily