Tarsus Group PLC (LON:TRS) shares headed downward in mid-afternoon trading Friday as the firm conducted a share placing to fund its buy-out of the remaining stake in its Mexican joint venture and the purchase of a controlling interest in a South East Asian firm.
The business conference firm said it had acquired the remaining 50% stake in EJK Tarsus Mexico, its joint venture with E.J. Krause & Associates for US$18mln in cash, while also upping its stake in South East Asia exhibition company AMB Tarsus Exhibitions to 75% from 50%.
The firm also said it had entered into a strategic partnership with Streamline Marketing Group in the United Arab Emirates.
The share placing raised £24mln to help fund the US$29mln combined price for the acquisitions, with the company issuing around 8.8mln new shares at a placing price of 270p, a 9.3% discount to its last close price of 298p.
The company also issued a trading update in the announcement, saying it had traded in line with expectations since its interim results on 26 July.
Tarsus added that bookings for the remainder of its 2018 shows were up 9% and buyers for the year to date were up 12%, both on a like-for-like basis.
Douglas Emslie, Group Managing Director at Tarsus, said the Mexican JV acquisition represented an opportunity to “accelerate” company growth, while the AMB purchase allowed the company to take control of the operation but maintain the existing management to run the business day-to-day.
In mid-afternoon trading, shares were down 4.3% at 285p.
-- Adds results of placing and updates share price --