Informa invests in Expomedia
18 Février 2003 - 8:00AM
UK Regulatory
RNS Number:6075H
Expomedia Group PLC
18 February 2003
Informa Group makes investment in Expomedia Group plc
Expomedia Group plc ("Expomedia" or the "Company") has today reached agreement
to place 1,700,000 new ordinary shares at a price of 120 pence per share with
Informa Group Plc to raise #2,040,000 before expenses. The Company and Informa
have previously reached agreement on joint ventures to launch a programme of
conferences and exhibitions in Russia.
The placing is conditional upon shareholder approval to increase the authorised
share capital of the company, authorise the directors to allot enough new shares
for the placing and disapply the statutory pre-emption rights contained in
section 89(1) of the Companies Act 1985. A circular giving notice of an
extraordinary general meeting will be posted to shareholders shortly. It is
intended that application will be made for the new ordinary shares to be
admitted to trading on the Alternative Investment Market of the London Stock
Exchange.
This equity injection is a first step towards closer association between the
companies. The object of the association is for Informa and Expomedia to work
together to build corporate and commercial relationships in both conferences and
exhibitions. Informa will have a put option to sell back to Expomedia these
shares at the subscription price no earlier than one year after the EGM.
Expomedia will have a call option on the same terms. Both these options will be
conditional upon the Company carrying out the necessary share capital
reorganisation (if required) to be able to effect the repurchase without
breaching the Companies Act 1985 and the Company will use all reasonable
endeavours to carry out such necessary reorganisation.
The placing proceeds will be used to fund the expansion programme of the Company
in Holland, Russia, Former Yugoslavia and Hungary.
Peter Rigby, Chairman of Informa comments, "We are very pleased to strengthen
our partnership with Expomedia and to continue our expansion in the growing
markets in which Expomedia operate. We believe that Expomedia and Informa's
activities complement one another well and that through developing a strategic
relationship we can work together to build new events in some exciting growth
markets. Expomedia and Informa bring together parallel skill sets which when
applied should maximise returns from investment in the conference and exhibition
markets."
Mark Shashoua, Chief Executive of Expomedia comments, "I am delighted to welcome
Informa Group as a shareholder in Expomedia and I look forward to furthering our
relationship for mutual benefit in the near future. We have started our
commercial operation very well with a series of conferences for the Russian
market. This strategic stake allows us to look more closely at how we can
develop both corporately and commercially across multiple markets."
For further press information contact:-
Informa Group PLC Expomedia Group PLC
Bell Pottinger Financial Sonya Gillespie
Catherine Lees/Zoe Sanders Tel: + 44 (0)20 7376 3300
Tel: + 44 (0)20 7861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
END
IOEMGGMZNNDGFZM