ITE GROUP PLC
17 September 1999
ITE Group Plc ('ITE' or the 'Company')
Acquisition of a 70% shareholding in M.E.C. Mediterranean Exhibitions &
Conferences Limited ('MEC')
ITE, the international exhibition organiser, is pleased to announce that on 16
September 1999 it acquired, through its wholly owned subsidiary, International
Trade and Exhibitions (ITE) Worldwide BV ('ITE Worldwide'), a 70% shareholding
in MEC from Karim Halwagi for an initial cash consideration of US$420,000.
This consideration will be adjusted if the profit before tax for the year
ended 31 December 1999 is less than US$150,000 such that any shortfall will be
repaid to ITE Worldwide based on a multiple of four.
ITE has granted a put option to Mr. Halwagi to sell his remaining 30%
shareholding at any time after the third anniversary of this agreement for
consideration to be calculated as a multiple of seven times the pre-tax
profits for the preceding year.
MEC currently organises two exhibitions, one in building and construction and
the other in internet and information technology. Both these exhibitions are
held in Cairo, Egypt. It is intended that MEC will become ITE's acquisition
vehicle in the Middle East utilising Mr. Halwagi's experience and contacts.
Lawrie Lewis, Chairman and Chief Executive of ITE, commented:
'The acquisition of a majority shareholding in MEC represents ITE's first step
in the development of its operations in the Middle East. Through Karim and
MEC, ITE is looking to enter into joint ventures with other exhibition
organisers in the region where we believe that ITE can add value to their
businesses.'
For further information, please contact:
Lawrie Lewis ITE Group Plc 07771 535 332
Chairman and Chief Executive 0171 596 5000
Odette Jonkers ITE Group Plc 0171 596 5000
Press Office
Isabel Petre Buchanan Communications Ltd 0171 466 5000
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