LONDON (Alliance News) - Tarsus Group PLC, a London-listed business-to-business media group, Monday said it has acquired half of the AMB Group from Andrew Siow and Richard Yew through joint venture vehicle AMB Tarsus Exhibitions Sdn Bhd, with the possibility of buying the remainder of the business, in a bid to strengthen its growth prospects in South East Asia.
Tarsus, which has interests in exhibitions, conferences, education, publishing and online media, said the acquisition has built a portfolio of exhibitions and conferences in some of its own key strategic sectors, with the largest focused on building, infrastructure, automotive and food processing.
Tarsus will pay an estimated USD13 million in cash for the 50% stake, made up of USD4.1 million in cash on completion, an equal amount in January 2016, and deferred payments linked to the performance of the business up to the end of 2017. The total payment for the initial 50% is capped at USD20 million, according to Tarsus, which said it is using existing financial resources to fund the deal. It has increased its bank facilities by GBP15 million to GBP75 million to provide "additional headroom" and extended the term to July 2020.
There is a put and call option over the sellers' remaining 50% stake in the business, which could permit them to dispose of their holding to Tarsus for up to USD25 million in cash. The sellers also will be able to dispose of their remaining stake in the joint venture in the event of a sale of "at least 50.1%" of Tarsus shares collectively held by both Chairman Neville Buch and Managing Director Douglas Emslie.
AMB Group made a pretax profit of USD2.2 million in the year ended February 28, when it had gross assets of USD2.9 million, Tarsus said, with the deal expected to be earnings accretive in 2015.
The sellers, Andrew Siow and Richard Yew, will continue to manage the business following the acquisition.
"I have known Andrew Siow for over 20 years, and he and Richard have an excellent track record in launching and developing events in the region. Their expertise will add significant strength and depth to the Group's operations in South East Asia. We expect there to be compelling opportunities to replicate Tarsus' leading brands into AMBT's geographic footprint," Emslie said in a statement.
Tarsus shares were untraded at 210.00 pence Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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