LONDON (Alliance News) - Exhibitions company ITE Group PLC on Friday said it has struck a deal to buy a majority stake in a portfolio of events from GPP Energy Advisors Ltd for GBP16 million.
ITE has acquired the stake via a newly-established joint venture with GPP, in which ITE will hold a 50.1% stake and GPP will hold the remainder.
ITE will pay an initial GBP16 million in cash to acquire the portfolio, which includes Africa Oil Week, with put and call options in place to allow ITE to acquire the remainder of the joint venture over ten years. The maximum consideration due is GBP50 million.
ITE also said it has raised GBP12 million, in part to finance the acquisition, via the placing of 7.2 million shares at 167.5 pence each. ITE shares closed at 175.25 pence on Thursday. The placing was conducted by Numis Securities Ltd, part of Numis Corp.
"ITE is continuing to build businesses in strategically important industry sectors and the acquisition of this portfolio, notably Africa Oil Week, increases our presence in the global oil, gas and energy sectors. This complementary move establishes a first-time presence for ITE in Africa, representing progress in achieving the Group's ambitions to expand its operations in markets and geographies with strong growth potentialas well as continuing to diversify the geo-political risk in our portfolio," said ITE Chief Executive Russell Taylor.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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