Wed, 25th Jul 2018 15:47
25 July 2018
ITE Group plc
("ITE" or the "Group")
Disposal of 75% holding in ECMI ITE Asia Sdn. Bhd
ITE Group plc today announces it has sold its 75% stake in ECMI ITE Asia Sdn. Bhd. ("ECMI"), a Malaysia-based events business, and related assets in Indonesia to UBMMG Holdings Sdn. Bhd., a subsidiary of UBM plc which recently became part of the Informa Group, for a cash consideration of MYR 15m (c. £2.8m*). This disposal is in line with the Group's Transformation and Growth Programme (the "TAG Programme").
ECMI runs the Cosmobeauté series of beauty trade exhibitions in Malaysia, Indonesia and Vietnam, and the biennial Lab series of Scientific Instrument and Laboratory Equipment trade exhibitions in Malaysia and Indonesia.
ITE acquired a 50% stake in ECMI in 2013. Under the terms of an existing put option arrangement with ECMI's founder shareholders CP Saw and WP Cheong, ITE acquired an additional 25% stake in ECMI on 18 June 2018, taking its total shareholding to 75%. ITE has today disposed of its entire 75% holding in ECMI. The proceeds will be reinvested into the Group.
In the year to 30 September 2017 (which excludes the biennial Lab exhibitions), ECMI had gross assets of MYR 13.2m (£2.5m), reported a turnover of MYR 9.8m (£1.8m) and a loss before tax of MYR 0.4m (£0.07m). In ITE's consolidated financial statements for the same period, ITE recognised a loss of MYR 0.13m (£0.03m) in respect of ECMI, presented within 'share of results of associates and joint ventures'.
Mark Shashoua, CEO, ITE Group plc said:
"A key element of our TAG Programme is managing our portfolio of events, and this transaction marks a further step in delivering this strategy. We are pleased to have found a supportive Malaysia-based partner for ECMI's events which can ensure the investment required for ECMI's continued success. I would like to thank the ECMI team for their contribution to ITE and wish them well for the future."
Subject to working capital adjustment at completion
*currently equivalent to £2.8m at an exchange rate of 0.1877 on 25 July 2018.
For further information please contact:
ITE Group plc
Melissa McVeigh, Director of Communications
+44 (0) 20 7596 5000
Charles Palmer/Harry Staight
+44 (0)20 3727 1000
About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world's leading organisers of international exhibitions and conferences.
ITE Group's strategic vision is to create the world's leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.
ITE Group plc is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.