ITE Group plc, the international exhibitions group, is pleased to announce that it has acquired 50.1% of a portfolio of events including Africa Oil Week from its owners, GPP Energy Advisors Limited, for a cash consideration of £16 million. AOW has been acquired through a newly established joint venture company formed between ITE (50.1% shareholder) and GPP (49.9% shareholder). Put and call options are in place over ten years, to enable ITE to acquire the remainder of the shares in such joint venture company from GPP, with the overall consideration to be capped at a maximum of £50 million.
Acquisition Highlights & Rationale
AOW is an annual Oil and Gas Conference and Exhibition held in the Cape Town Exhibition and Convention Centre and is the longest-running and most prominent event held in Africa for the Continent’s fast-growing oil, gas-LNG and energy industry. The next edition (the 22nd) will take place 27-30 October 2015. Duncan Clarke and Babette van Gessel, who are the founding partners of Global Pacific and Partners, will act as advisers to the business during the exit period.
The portfolio also includes assets in Africa, Asia and Latin America, and there is scope to develop AOW further, leveraging ITE’s exhibition and industry expertise.
For the year ended 31 December 2014 the profit attributable to the assets which are the subject of the transaction was £4.9m. Gross assets are £32m at completion.
This move represents further development of ITE’s Energy, Oil & Gas portfolio and is consistent with the Group’s strategy to strengthen existing verticals and to enter new regions.
The acquisition provides ITE with a market entry into Africa. The African exhibition market is small but growing and ITE will leverage its expertise to establish and develop its business in the region.
For the full press release click ITE