KUALA LUMPUR (Nov 17): Marco Holdings Bhd is acquiring the remaining 59.61% stake in watches and clock retailer Time Galerie (M) Sdn Bhd for RM37.55 million cash from Giro Laksana Sdn Bhd and Lim Siew Sooi.

The electronic products trading group bought its first 40.39% stake in Time Galerie back in December 2018, for cash consideration of RM26.66 million.

Time Galerie has 56 retail outlets located in major shopping complexes and retail stores in the country, Marco said.

The retailer company saw average annual profit after tax (PAT) of RM5.8 million in the last three financial years ended Dec 31, 2022 (FY2022), with adjusted net assets of RM33.44 million.

Marco is acquiring a 4.96% stake from Lim, with the balance 54.65% from Giro Laksana, which is owned by Lai Yin Chun and Lim Meng Hang.

“Since FY2018, Time Galerie had declared dividends on four occasions totalling RM46 million with Marco’s share of dividend totalling approximately RM18.6 million,” Marco said.

It believes turning Time Galerie into a wholly-owned unit would accord it with a stronger foothold in the watches retail segment.

Marco posted its record year in FY2022 on higher sales volume and improved margin, with net profit rising 17.56% year-on-year to RM20.73 million, from RM17.64 million. Revenue rose 14.37% to RM179.2 million, from RM156.69 million.

In 1HFY2023, Marco net profit fell 3.77% to RM9.7 million from RM10.08 million, while revenue fell 4.73% to RM82.86 million, from RM86.97 million.

Shares of Marco closed unchanged at 19.5 sen, giving the group a market capitalisation of RM200.45 million.