ITE Completes Acquisition of 70% Stake in Shanghai Gehua
Last week, ITE Group plc’s subsidiary, ITE Asia Exhibitions Limited, announced that the company had received approval from the Chinese Government to complete the acquisition of a 70% stake in Shanghai Gehua.
The initial consideration payable for the transaction is £9.2 million (US$11.5 million) – with £5.7 million (US$7.1 million) in cash and about 2.3 million ordinary shares. The deferred consideration will be capped at £2.6 million (US$3.3 million) and is payable in 2017 based on the audited financial performance in the year ending 31st December 2016.
Shanghai Gehua, founded in 2001, runs exhibitions in China covering a variety of industries such as textile & clothing, auto parts & accessories, mechanical equipment, gifts and food.