LONDON (Alliance News) - ITE Group PLC said Wednesday it plans to sell its non-core Russian events unit ITE Expo LLC to Shtab-Expo LLC for GBP8 million.
ITE Expo operates 56 smaller, regional-focused events in Russia. The group will retain 16 core events in the country, which will form part of a new legal entity under the name of ITE Expo International LLC.
The company will receive the GBP8 million payment over the nine years following completion of the sale, together with a GBP5 million additional payment based on target's incremental revenue growth.
The company said that, under the terms of the deal, the purchaser is encouraged to make earlier repayments. If by 2023 GBP6.5 million has been paid, the rest of the sum will be satisfied.
ITE plans to use the proceeds from the sale for general working capital needs.
Shares in the company were trading down 0.6% at 82.50 pence each.
