ITE disposes of 75% holding in ECMI ITE Asia Sdn. Bhd to UBM (Informa)

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 15m1 (c. £2.8m*).  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 (£2.5m), reported a turnover of MYR 9.8m (£1.8m) and a loss before tax of MYR 0.4m (£0.07m).  In ITE’s consolidated financial statements for the same period, ITE recognised a loss of MYR 0.13m (£0.03m) 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.”