ITE Group has announced the sale of its 75 per cent stake in Malaysia-based ECMI ITE Asia to UBMMG Holdings, a subsidiary of UBM, which recently became part of the Informa Group, for a cash consideration of MYR 15m (Approx. £2.8m).
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 13.2m (£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.”