Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Tarsus shares decline as it conducts placing to fund buy-out of joint venture

The business conference firm said it had acquired the remaining 50% stake in EJK Tarsus Mexico while also upping its stake in AMB Tarsus Exhibitions to 75% from 50%
Speaker at a business conference
The placing issued around 8.8mln new shares at a price of 270p each

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%.

READ: Deutsche Bank initiates Tarsus Group at ‘Buy’ as growth rate beats industry average

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 --

View full TRS profile View Profile

Tarsus Timeline

Related Articles

clapperboard
Fri
According to Liberum, FFI expects the US performance to normalise by the end of this financial year
Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use