Business Times in Singapore reported today that luxury watch chain Sincere Watch has been sold to a Hong Kong billionaire for a cool SGD232 million (~USD181m).
It has to be noted that owner Mr Tay Liam Wee first sold the company in 2007 for SGD530 million, bought it back a few years later at SGD113 million before the latest transaction.
His total profit from these trades of the company his father founded in 1954 is a decent SGD649 million (~USD509m).
How does this affect the average watch-loving man on the street? The new owners may find ways to improve margin and yield and that will possibly translate to higher prices or lower discounts for end consumers. On the other hand, if the new owners have real deep pockets, they may increase investment in the company, open new grand boutiques, carry more brands and provide steeper competition on the other two big watch retailers. Or maybe it will just be status quo with the new owners hoping to pull off a "Mr-Tay" of their own and flip the investment for a nice profit.
As they say, only time will tell! What do you think?
Click here to read the article on Business Times
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