KUALA LUMPUR: Paragon Globe Bhd's subsidiary Capital Leap Sdn Bhd is disposing of 810,000 shares or 20.25% equity interest in Time Galerie (M) Sdn Bhd to Marco Holdings Bhd for RM13.37mil cash.

Time Galerie is a watch, clock, gift and accessory retailer with 66 retail outlets in major shopping malls and stores throughout Malaysia.

In a filing with the stock exchange, Paragon said the sale consideration took into consideration the number of retail outlets owned by Time Galerie, its net assets of RM50.24mil as at Dec 31, 2017, the average profit after tax for the past three years of RM6.62mil, future potential earnings and prospects.

The proposed disposal is expected to be completed within one month from the date of the share sale agreement on Nov 9.

Paragon said the proposed disposal is in line with its recent diversification of businesses into construction and property development, and the acquisition of land bank. 

"The Company intends to streamline the Group assets and allocate its financial resources for development activities, with the aim to deliver near term profit and value to shareholders," it said.