Cortina completes acquisition of Sincere Watch

MAINBOARD-listed luxury watch retailer Cortina Holdings has completed the acquisition of privately-held Sincere Watch for S$84.7 million, it said in an exchange filing early on Wednesday morning.

The purchase consideration was adjusted upwards from S$84.5 million to reflect the inclusion of office premises at Wisma UOA II in Kuala Lumpur, Malaysia, owned by an entity of Sincere Watch.

The intention earlier was to exclude the said property from Cortina's acquisition of Sincere Watch and for Sincere Watch to lease back the office premises for six months with an option to renew for another six months post completion of the acquisition.

The counter closed 4.96 per cent lower at S$2.11 on Wednesday.

Cortina said that the acquisition of Sincere Watch will give it exclusive distributorship rights to the Franck Muller brand in 13 countries within the Asia-Pacific.

The acquisition also gives Cortina access to Sincere Watch's arsenal of brands that can be distributed across 40 combined outlets and create operational synergies that will increase Cortina's value to both consumers and business partners.

Cortina expects Sincere Watch, which is currently loss-making, to be profitable by around the financial year ending March 31, 2022.