UBM acquires 75% stake in ECMI ITE Asia for £2.8M

UBMUBMMG Holdings, a subsidiary of UBM, which recently became part of the Informa Group, has acquired ITE Group’s 75 per cent stake in Malaysia-based ECMI ITE Asia for a cash consideration of MYR 15m (approx. £2.8 million). The sale forms part of ITE’s Transformation and Growth (TAG) strategy.

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 per cent stake in ECMI in 2013. Under the terms of an existing arrangement with ECMI’s founder shareholders CP Saw and WP Cheong, the organiser acquired an additional 25 per cent stake in ECMI on 18 June 2018, taking its total shareholding to 75 per cent. With the acquisition by UBM, ITE has disposed of its entire 75 per cent 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 13.2 million (£2.5 million), reported a turnover of MYR 9.8 million (£1.8 million) and a loss before tax of MYR 0.4 million (£0.07 million). In ITE’s consolidated financial statements for the same period, ITE recognised a loss of MYR 0.13 million (£0.03 million) in respect of ECMI, presented within ‘share of results of associates and joint ventures’.

Mark Shashoua, CEO of ITE Group, 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.”

UK, London & Malaysia, Selangor

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ITE acquires 50% of DUBM in Indonesia

ITEInternational trade exhibitions and conferences group ITE Group, is acquiring 50% of the shares in PT Debindo Unggul Buana Makmur (“DUBM”) from a group of three private individuals. The acquisition is subject to the approval of the Indonesian Investment Coordinating Board. This is anticipated to be received within two months.

The Sellers, who are the original founders of the business, will retain the remaining 50% of the shares and will continue to manage the business.

DUBM owns the Indobuildtech exhibitions which serve the building and construction industries in Indonesia and the surrounding region. The largest event is held in Jakarta in June each year and is the leading event of its kind in Indonesia. The 2013 exhibition was the 11th edition which sold approximately 12,000m2 net and was attended by over 33,000 professional visitors. The upcoming event opens in the Jakarta Convention Centre on 11th June 2014. In addition, satellite events are held in Surabaya, Bandung, Makassar and Bali.

Commenting on the acquisition, ITE’s Chief Executive Officer, Russell Taylor, said: “Indobuildtech is the leading building exhibition in Indonesia. The addition of this exhibition to ITE’s Build portfolio is consistent with our strategy of building market leading positions in core markets and sectors. The building industry is a growth sector in developing markets and with this complementary acquisition, ITE will leverage its international exhibition expertise to develop further its position and benefit from a strengthened portfolio within this sector.”

UK, London

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