Completion of 70% Stake in Shanghai Gehua

RNS Number : 4790R

ITE Group PLC

09 December 2016

 

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9 December 2016

ITE Group plc

("ITE" or the "Group")

Completion of acquisition of 70% stake in Shanghai Gehua exhibition portfolio

As announced at the time of its interim results, the Group agreed terms to acquire a 70% stake in a small Shanghai-based business running a portfolio of complementary exhibitions.

Today, ITE Asia Exhibitions Limited, a wholly owned subsidiary of ITE, announces that it has received approval from the Chinese Government which signals the completion of this transaction to purchase (i) 70% of the issued share capital of Shanghai ITE Gehua Exhibitions Co Ltd, an exhibition organiser based in Shanghai, and simultaneously (ii) 70% of the issued share capital of ITE Gehua Exhibitions Co Ltd, based in Hong Kong ("Transactions").

Founded in 2001, Shanghai Gehua run a portfolio of exhibitions in China spanning Textile and Clothing, Auto Parts and Accessories, Mechanical Equipment, Gifts, and Food - attracting both domestic and international exhibitors and visitors.

The aggregate initial consideration payable for the Transactions is £9.2 million, to be satisfied by the aggregate payment of £5.7m cash and the aggregate issue of 2,299,379 ordinary shares of £0.01 in ITE ("Consideration Shares"). The Consideration Shares will be newly issued into trading. Deferred contingent consideration, capped at £2.6 million (at today's exchange rate), will be payable in 2017 based on audited financial performance in the year ending 31 December 2016.  

Application has been made to the Financial Conduct Authority for the Consideration Shares to be admitted to the Official List, and to the London Stock Exchange for the Consideration Shares to be admitted to trading. Dealings in the Consideration Shares are expected to commence on Thursday 15 December 2016.

Following admission, the issued share capital of ITE will be 264,439,052 ordinary shares of £0.01 each.

The figure of 264,439,052 should be used as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

Enquiries:

ITE Group plc                           [phone]

Mark Shashoua

Andrew Beach

Numis                                      [phone]

Nick Westlake

Toby Adcock

 

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