Citychamp Watch to Sell Stake in UK Watch Seller For HK$74 Million
Citychamp Watch & Jewellery Group (HKG:0256) agreed to sell a 50% stake in U.K.-based Rotary Watch & Jewellery for HK$73.4 million, according to a Thursday filing with the Hong Kong bourse.The company will sell the stake to Peers Hardy (UK) and will retain the other half of the watch seller.Following the sale, the firm will no longer consolidate Rotary Watch & Jewellery's financial results in its own statements.Citychamp Watch also granted Peers Hardy a so-called drag-along option which would grant for a further 25% sale of Rotary Watch & Jewellery.Under the option, if the business receives an offer of at least 12 million pounds and is not unanimously approved by both Citychamp Watch and Peers Hardy, the latter can prompt Citychamp Watch to sell a 25% stake to the third-party buyer for a maximum consideration of 3 million pounds.
