International events company ITE group, headquartered in London, has announced its market entry into Africa following its acquisition of a controlling stake (50.1%) in a portfolio of events including Africa Oil Week (AOW).
The acquisition from GPP Energy Advisors Limited (GPP), was for a cash consideration of £16m. The new joint venture structure allows ITE to acquire the remainder of the shares over 10 years with an overall consideration of no more than £50m.
The move represents a first-time presence for ITE in Africa and diversifies the geo-political risk in a portfolio heavily invested in Russia.
AOW is an annual Oil and Gas Conference and Exhibition held in the Cape Town Exhibition and Convention Centre. It is the longest-running 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.
The wider portfolio also includes assets in Africa, Asia and Latin America.
ITE also announced a placing, 6 March, of 7.2m new ordinary shares placed at 167.5 pence per share with institutional investors. The move raises £12m and represents 2.9% of the company’s existing issued share capital.
The proceeds of the placing will be used to fund part of the AOW deal.
ITE has said the acquisition and placing are expected to be accretive to earnings in the first 12 months.
ITE chief executive Russell Taylor (pictured) said: “ITE is continuing to build businesses in strategically important industry sectors and the acquisition of this portfolio, notably Africa Oil Week, increases our presence in the global oil, gas and energy sectors. This complementary move establishes a first-time presence for ITE in Africa, representing progress in achieving the group’s ambitions to expand its operations in markets and geographies with strong growth potential as well as continuing to diversify the geo-political risk in our portfolio.
“I look forward to working together with our partners, GPP Energy Advisors, to develop the full potential of this event together. I am also excited about the opportunity for ITE to develop a wider business in Africa where economic growth rates are expected to be high.”
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