Shares of TheHourGlass (AGS.SI), a luxury watch retailer, plunged 4.52% during intraday trading on Monday following the company's announcement of a significant acquisition in Australia. The sharp decline reflects investor concerns about the deal's impact on the company's financial position and future prospects.

According to a filing with the Singapore Exchange, TheHourGlass has agreed to acquire the entire issued and paid-up share capital of an Australian special-purpose vehicle, A.C.N. 685 541 851 Pty Ltd, for AU$90 million (approximately S$72.4 million). The newly incorporated Australian company is involved in the retailing of watches and related products, aligning with TheHourGlass's core business.

The market's negative reaction to the acquisition news suggests that investors may be wary of the substantial financial commitment involved or uncertain about the potential returns on this investment. Additionally, concerns about integration challenges or the current economic climate in Australia could be contributing factors to the stock's decline. As TheHourGlass moves forward with this significant expansion in the Australian market, investors will likely be closely monitoring the company's ability to leverage this acquisition for growth and profitability.