Expansion of Central & Eastern European Operations
ITE Group PLC
2 November 1999
Acquisition in Poland
Joint Venture in Bulgaria
And
Acquisition of Consultancy agreement in Moscow
ITE Group plc, ('ITE'), the international exhibitions
specialist is pleased to announce the expansion of its
Central and Eastern European operations with two
acquisitions and a joint venture.
Biuro Reklamy Poland S.A ('Biuro Reklamy')
On 1 November 1999 ITE, through its wholly owned
subsidiary, International Trade and Exhibitions (ITE)
Worldwide B.V., entered into a conditional agreement with
Pentor Communications International L.P. ('Pentor') to
acquire its 60% shareholding in Biuro Reklamy for a cash
consideration of US$3.7 million. This agreement is
conditional, inter alia, on consent of the Office of
Protection of Competition and Consumers in respect of
anti-competition laws and the consent to the transfer of
shares by the shareholders of Biuro Reklamy.
Biuro Reklamy, together with its two subsidiaries Polexpo
and Agpol, generated sales in 1998 of zl 39.218 million
(US$ 9.29 million) and profits after tax and minority
interests of zl 2.031 million (US$ 481,000). The net
assets of Biuro Reklamy as at 31 December 1998 were
zl 2.381 million (US$564,000). Biuro Reklamy is the
largest exhibition organiser in Warsaw with 14
exhibitions in 1998 with a net exhibition space of 43,741
sq.ms. Through its subsidiary it also holds exhibitions
in Gdansk.
Joint Venture with Agency Bulgarreklama Limited
('Bulgarreklama') in Bulgaria
ITE through its 70% owned subsidiary, IEG International
Limited, has recently entered into a long term joint
venture agreement with Bulgarreklama in relation to the
18 exhibitions that Bulgarreklama expects to hold in
Sofia, Bulgaria in the year 2000. ITE and Bulgarreklama
will share the profits on a 50/50 basis with ITE selling
international space and Bulgarreklama carrying out the
local selling and organising of the shows.
Bulgarreklama is also building a new exhibition centre in
Sofia and ITE is providing support for this project which
should be ready by May 2000.
L.A.Financial Group Inc, Alex Bernstein and Sergei Levit
On 1 November 1999, ITE agreed to acquire certain of the
rights of the existing consultancy agreement with
L.A.Financial Group Inc, Alex Bernstein and Sergei Levit
and to the hivedown of ITE s exhibitions in Moscow into a
new wholly owned subsidiary of ITE. The consideration
agreed to be paid will total US$8 million with an initial
payment of US$2 million and further equal payments
US$1.5m at the end of each financial year for the next
four years.
ITE will no longer pay any sales commission under the
existing consultancy agreement, which amounted to
approximately US$480,000 in the year to 30 September 1999
(US$ 600,000 1998).
Lawrie Lewis, Chairman of ITE said, 'These two
acquisitions and the joint venture further expands ITE s
operations in Central and Eastern Europe through
established local partners. Biuro Reklamy has a
reputation for quality exhibitions in Poland and should
prove an excellent base for us. We will be looking to
merge our existing exhibitions in this region into their
operation, then to go on to further expand in Poland. The
joint venture with Bulgarreklama cements our operations
in Bulgaria, following our acquisition of exhibition
organisers, IEG which was announced earlier this year.
The acquisition of the consultancy arrangements in Russia
means that ITE and Alex Bernstein s team in Moscow will
now consolidate and focus on a common goal. These deals
and the new management team show that ITE s strategy to
be the leading exhibition organiser in Eastern Europe is
now becoming a reality.'
For further information, please contact:
ITE Group plc
Lawrie Lewis Chairman 0171 596 5000
Odette Jonkers Press Office 0171 596 5253
Buchanan Communications
Richard Oldworth/Isabel Petre 0171 466 5000
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