ITE Group PLC Disposal of 75% holding in ECMI ITE Asia Sdn. Bhd (7746V)
26 July 2018 - 12:47AM
UK Regulatory
TIDMITE
RNS Number : 7746V
ITE Group PLC
25 July 2018
25 July 2018
ITE Group plc
("ITE" or the "Group")
Disposal of 75% holding in ECMI ITE Asia Sdn. Bhd
ITE Group plc today announces it has sold its 75% stake in ECMI
ITE Asia Sdn. Bhd. ("ECMI"), a Malaysia-based events business, and
related assets in Indonesia to UBMMG Holdings Sdn. Bhd., a
subsidiary of UBM plc which recently became part of the Informa
Group, for a cash consideration of MYR 15m(1) (c. GBP2.8m*). This
disposal is in line with the Group's Transformation and Growth
Programme (the "TAG Programme").
ECMI runs the Cosmobeauté series of beauty trade exhibitions in
Malaysia, Indonesia and Vietnam, and the biennial Lab series of
Scientific Instrument and Laboratory Equipment trade exhibitions in
Malaysia and Indonesia.
ITE acquired a 50% stake in ECMI in 2013. Under the terms of an
existing put option arrangement with ECMI's founder shareholders CP
Saw and WP Cheong, ITE acquired an additional 25% stake in ECMI on
18 June 2018, taking its total shareholding to 75%. ITE has today
disposed of its entire 75% holding in ECMI. The proceeds will be
reinvested into the Group.
In the year to 30 September 2017 (which excludes the biennial
Lab exhibitions), ECMI had gross assets of MYR 13.2m (GBP2.5m),
reported a turnover of MYR 9.8m (GBP1.8m) and a loss before tax of
MYR 0.4m (GBP0.07m). In ITE's consolidated financial statements for
the same period, ITE recognised a loss of MYR 0.13m (GBP0.03m) in
respect of ECMI, presented within 'share of results of associates
and joint ventures'.
Mark Shashoua, CEO, ITE Group plc said:
"A key element of our TAG Programme is managing our portfolio of
events, and this transaction marks a further step in delivering
this strategy. We are pleased to have found a supportive
Malaysia-based partner for ECMI's events which can ensure the
investment required for ECMI's continued success. I would like to
thank the ECMI team for their contribution to ITE and wish them
well for the future."
(1) Subject to working capital adjustment at completion
*currently equivalent to GBP2.8m at an exchange rate of 0.1877
on 25 July 2018.
For further information please contact:
ITE Group plc
Melissa McVeigh, Director of
Communications +44 (0) 20 7596 5000
FTI Consulting
Charles Palmer/Harry Staight +44 (0)20 3727 1000
About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world's
leading organisers of international exhibitions and
conferences.
ITE Group's strategic vision is to create the world's leading
portfolio of content-driven, must-attend events delivering an
outstanding experience and ROI for our customers. In May 2017 the
Group launched its Transformation & Growth (TAG) programme,
which is designed to transform the Company from a geographic-led
business to a product-led business that focuses on market-leading
events, wherever they are in the world. ITE strives to run the best
shows and offer the best service to its customers throughout the
world regardless of location. By putting exhibitors and visitors at
the heart of everything we do, we plan to drive sustainable growth
for our shareholders.
ITE Group plc is a public limited company and has been listed on
the main market of the London Stock Exchange since 1998.
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END
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