ITE Group acquires portfolio of events in Africa

Exhibitions group ITE has acquired a major stake of a portfolio of events for £16m, funded by a placing of new shares.

ITE now holds 50.1% of the portfolio, which includes the Africa Oil Week event, while GPP Energy Advisors holds the remaining stake.

The group said put and call options were in place over the next ten years to entitled it to acquire the remaining shares for an overall consideration of £50m.

Broker Numis Securities led £12m a fundraising with the placing of 7.2m shares at a price of 167.5p apiece to help fund the acquisition.

Chief executive Russell Taylor said the acquisition will expand the business in Africa, where "economic growth rates are expected to be high and the exhibition industry is currently at an early stage of development".

The deal is expected to increase earnings in the first twelve months.

Shares were up 5.95% to 185.68p on Friday at 14:34.