Exercise of Call Option Over 31.7% of ABEC

RNS Number : 2783E

ITE Group PLC

03 November 2015

 

3 November 2015                                         

ITE Group plc

Exercise of Call Option over 31.7% of ABEC Exhibitions and Conferences Pvt Ltd

ITE Group plc, ("ITE") the international exhibitions group specialising in emerging and developing markets, announces that its wholly owned subsidiary, Airgate Holdings Ltd, has exercised its option to acquire a further 31.7% of the shares of Mumbai based ABEC Exhibitions and Conferences Pvt Ltd ("ABEC") for circa £14m.

A minority stake of 28.3% in ABEC was acquired in December 2012 and this further acquisition takes the total holding to 60%. The acquisition will be financed out of the Group's existing bank facilities and is expected to be earnings enhancing in the current financial year. Following the completion of this transaction ITE will have net debt of circa £65m, and continues to trade comfortably within its banking facilities.

ABEC is one of India's leading exhibition businesses, running over 20 exhibitions across different industry sectors including building & interiors, education, fashion, real estate, and oil & gas.

ABEC's current management team including Chairman, Sumit Gandhi and COO, Manish Gandhi, who own the remaining 40% of the shares, will remain working for the business.

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

"ITE is continuing to build businesses in strategically important industry sectors and the increase in our holding of ABEC enhances our presence in the Indian exhibition market which offers significant potential. ABEC continues to perform well and this move represents further progress in achieving the Group's ambitions to expand its operations in markets and geographies with further potential for growth as well as continuing to diversify the geo-political risk in our portfolio."

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Enquiries

Russell Taylor, CEO	020 7596 5000
Neil Jones, CFO
ITE Group plc
Charles Palmer	020 3727 1000
Emma Appleton
FTI Consulting

 

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