Regulatory Story
Go to market news section View chart   Print
RNS
ITE Group PLC  -  ITE   

Acquisition of minority stake in ABEC

Released 07:00 04-Dec-2012

RNS Number : 6399S
ITE Group PLC
04 December 2012
 



 

4 December 2012                                                                                                                                            

ITE Group plc
Acquisition of minority stake in ABEC strengthens

ITE's position in the Indian market

ITE Group plc (ITE), the emerging and developing markets exhibitions specialist, today announces the acquisition by wholly owned subsidiary Airgate Holdings Ltd, of 28.3% of the shares of Asian Business Exhibitions & Conferences Ltd. ('ABEC' or 'the business') from QInvest, Qatar's leading Investment bank. The total consideration is c. INR 1,227 million (£14m), which is payable in cash on completion. The acquisition will be funded from existing cash resources and agreed debt facilities. There are arrangements in place to enable ITE to increase its shareholding in future.

ABEC is one of India's leading exhibition businesses, running 19 exhibitions across 11 vertical markets including construction, architecture, design, education, lifestyle, real estate, and oil & gas. Characterised by strong local management and with 2012 revenue c. INR 1.1bn (£12.5m), ABEC's 8% market share makes it India's largest private exhibition organiser. The portfolio of events is complementary to ITE's existing exhibition interests in India and the two businesses will be run concurrently.

 

The business being acquired generated profits of INR 140m (£1.6m) in the year ended 31 March 2012 and had gross assets of INR 1,724m (£20m) at completion. The acquisition is expected to be earnings neutral for the financial year ending 30th September 2013.

 

Commenting on the acquisition, ITE's Chief Executive Officer, Russell Taylor, said:

 

"ABEC has a quality portfolio of events with strong market positions in sectors where ITE has an established presence such as construction, oil & gas and security. ABEC's events in the construction and design sector total more than 65,000m2 net of sold exhibition space, giving ITE an interest in India's dominant trade shows for this growing sector.

 

"With expertise in this sector and its strong international sales network, ITE can deliver significant value to ABEC's business. Along with ITE's current business in India, this gives ITE a leading position in a dynamic region with an exhibition industry that is currently experiencing strong growth."

 

Commenting on the deal, ABEC's Chairman, Mr SM Gandhi, said:

 

"ITE has a large portfolio of construction, oil & gas and related events, which complements ABEC's domestic events. We are excited about the synergies that we will derive from ITE's expertise and international presence and are confident of ABEC scaling new heights."

-ends-

Enquiries:



Russell Taylor, CEO  

ITE Group plc 

0207 596 5000

Charles Palmer

FTI Consulting 

0207 831 3113

James Serjeant

Numis Securities Ltd

020 7260 1000

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQTJBJTMBBMTLT
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Acquisition of minority stake in ABEC - RNS