(Reuters) – Exhibition organiser ITE Group <ITE.L> said on Wednesday it would buy Mining Indaba, the world’s largest mining investment conference, from Euromoney Institutional Investor Plc <ERM.L>, and forecast a 10 percent rise in annual like-for-like revenue.
The 30.1 million pound sale is the latest in a string of divestitures by Euromoney, a British business-to-business information company, as it sharpens its focus on its core offerings.
Mining Indaba, which will run for its 25th year in 2019 in Cape Town, is attended by more than 2,000 companies annually. The event generated sales of 7.2 million pounds and core earnings of 3.7 million pounds in the year ended February, ITE said.
ITE already manages ITE Africa Oil Week – an energy industry event- in Cape Town and said its customer base and ministries across Africa could benefit from the two events operating under one owner.
The deal will be funded through a combination of ITE’s existing cash and loans and will add to earnings its first full year of ownership, ITE added.
ITE announced a three-year turnaround strategy last year to focus on core market leading events, after unrest in Turkey and the scrapping of high-value banknotes in India affected some planned events.
The company also warned on Wednesday of a currency impact from emerging markets next year.
ITE bought a portfolio https://reut.rs/2DUiRtA including Africa Oil Week and moved into Africa in 2015 having been hit by a plunging Russian rouble and political upheaval in Ukraine in 2014.
Euromoney, 49.04 percent-owned by Daily Mail & General Trust Plc <DMGOa.L>, said it was selling the business because it did not align with its strategy.
(Reporting by Shariq Khan, Noor Zainab Hussain and Muvija M in Bengaluru; Editing by Amrutha Gayathri)