11th Jun 2014 06:41
LONDON (Alliance News) - Exhibitions company ITE Group PLC Wednesday said it has agreed a binding contract to buy a 50% stake in Indonesian exhibitions company PT Debindo Unggul Buana Makmur from that company's founders.
It didn't give any financial details for the buy, but said it expects the acquisition to boost earnings in the first full year of ownership. It added that it will finance the deal out of its existing balance sheet.
ITE said the three founders will retain the other half of the business and will continue to manage it. PT Debindo Unggul Buana Makmur owns the Indobuildtech exhibitions aimed at the building and construction industries in Indonesia and the surrounding region.
The largest event is held in Jakarta in June each year. The 2013 exhibition was the eleventh, and sold approximately 12,000 square metres net and was attended by over 33,000 professional visitors. Satellite events are held in Surabaya, Bandung, Makassar and Bali.
"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," ITE Chief Executive Russell Taylor said in a statement.
By Steve McGrath; [email protected]; @SteveMcGrath1
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