Tarsus Regulatory News (TRS)

3 Mar 2008 07:00

Tarsus Group PLC03 March 2008 3 March 2008 TARSUS GROUP PLC Acquisition in China Tarsus Group plc ("Tarsus" or "the Group's") (LSE: TRS), the internationalbusiness-to-business media group with interests in exhibitions, conferences,publishing and online media, has today announced the acquisition of 50 per centof the share capital of Hubei Hope Exhibition Company Limited ("Hope") for amaximum total consideration of RMB 20 million (approximately £1.4 million). Theacquisition is conditional on receiving approval by the Chinese government whichis expected in April 2008. Hope is wholly owned by Hubei OIN-Hope Exhibition Service Ltd. Co., which iswholly owned by the management of Hope. Founded in 2000, Hope is one of theleading exhibition organisers in Central and Western China and owns andorganises a portfolio of 27 exhibitions annually in three sectors: medicalequipment, industrial equipment and leisure. The portfolio covers approximately50,000 net square metres and the business employs approximately 150 people inseven offices and is headquartered in Wuhan. Tarsus will pay an initial consideration of RMB 12 million (approximately£850,000) with a further RMB 3 million (approximately £200,000) payable whencertain financial targets are achieved. In addition, both Tarsus and the vendorshave committed to invest a further RMB 5 million (approximately £350,000) eachto further expand the business both by acquisition and organically over the next12 months. Together these payments would produce the maximum total considerationof RMB 20 million (approximately £1.4 million). Hope's unaudited revenues and profits before tax for the year to 31 December2007 were RMB 21.1 million (approximately £1.5 million) and RMB 4.3 million(approximately £300,000) respectively. As at 31 December 2007, Hope's net assetswere approximately RMB 8.3 million (approximately £590,000). Douglas Emslie, Group Managing Director of Tarsus, said: "Increasing our exposure to fast growing emerging markets is a key part of theGroup's strategy. A cultural requirement for personal contact is continuing todrive demand for exhibitions in China. As in more developed western economies,exhibitions are a vital sales conduit for bringing together buyers and sellersand developing important long-term business relationships. Exhibition groups of Hope's size and quality are extremely hard to come by inChina and, as such, this acquisition is a major step forward in our strategy. Aswell as providing a platform for further growth in the more developed Shanghaimarket it also gives us a leading position in the fast developing Central andWestern Chinese markets." Enquiries: Tarsus Group plc:Douglas Emslie, Group Managing Director: 020 8846 2700 Media:Matthew Moth, Madano Partnership: 020 7593 4000 Investors/Analysts:Neville Harris, IRfocus: 020 7593 4215Stephen Scott, Annabel Michie, Scott Harris 020 7653 0030 This information is provided by RNS The company news service from the London Stock Exchange