Department store chain Parkson has bought a 50 per cent stake in watch retailer Watatime.

Parkson will pay 15 million ringgit (US$4.6 million) for the stake.

Parkson has a call option to acquire another 20 per cent stake in Watatime for 8.2 million ringgit, which is exercisable within one year, commencing immediately after the fifth anniversary of the put and call option agreement. The indicative call option fee is 3.2 million ringgit.

“The acquisition of a luxury watch segment retailer with the most number of outlets in Malaysia will complement the existing range of merchandise including fashion and lifestyle products offered by the Parkson Group,” the company said in a statement.

With a total of 13 Watatime retail outlets located in shopping malls throughout Malaysia, the acquisition bodes well for Parkson in widening its earnings base.