Acquisition of minority stake in ABEC

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 30^th 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."

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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

 

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