The Hour Glass (AGS.SI) saw its stock plummet 4.52% during intraday trading, following the company's announcement of a significant acquisition. The luxury watch retailer revealed plans for its wholly-owned Australian subsidiary to acquire a special purpose vehicle (SPV) for AU$90 million (approximately S$72.4 million).

According to the company's filing with the Singapore Exchange, the SPV, identified as A.C.N. 685 541 851 Pty Ltd, is a newly-incorporated Australian company whose principal activity is the retailing of watches and related products. This move appears to be part of The Hour Glass's strategy to expand its presence in the Australian luxury watch market.

The sharp decline in The Hour Glass's stock price suggests that investors may have concerns about the acquisition's cost or potential risks. However, it's worth noting that prior to this announcement, the company's shares had closed flat at S$1.55 on Friday. As the luxury retail sector continues to evolve, particularly in the Asia-Pacific region, the long-term impact of this acquisition on The Hour Glass's market position and financial performance remains to be seen.