Chinese Joint Venture (9942B)

TIDMTRS

RNS Number : 9942B

Tarsus Group PLC

25 April 2012

Tarsus Group plc

Joint Venture with leading Chinese automotive aftermarket exhibition organiser

Tarsus Group plc (LSE: TRS, "Tarsus", the "Group"), the international business-to-business media group, has conditionally agreed to acquire 50 per cent of the China International Automotive Aftermarket Industry and Tuning (Guangzhou) Trade Fair ("GZ Auto") and other associated business assets. The joint venture and the exclusive GZ Auto-related support and services fee will be for a maximum sum of RMB112 million (equal to approximately GBP11.2 million) payable in cash (the "Transaction" or "Joint Venture").

The Joint Venture is subject to regulatory approval in China and certain other conditions. Completion is expected within the next three months. Upon the agreement becoming unconditional, Tarsus will pay approximately RMB72 million (equal to approximately GBP7.2 million) in 2012, with the remaining sum payable in 2013 and 2014, subject to the achievement of certain profit targets related to future performance. The Transaction will be funded from the Group's existing cash resources and available bank facilities.

The Transaction is expected to be earnings accretive in the current financial year and in 2013.

GZ Auto, a leading business to business automotive aftermarket exhibition held annually in China, is strategically located in Guangzhou, a recognised manufacturing and trading hub with excellent links to the rest of China, Hong Kong and South East Asia. The Joint Venture provides Tarsus with exposure to the rapidly growing automotive industry in China, which overtook the US in 2009 as the largest consumer of new automobiles.

The February 2012 iteration of GZ Auto was the eighth edition of the event organised by Jiuzhou Media and attracted c.1200 exhibitors occupying c.60,000 net square metres. The main exhibitor sectors are: car audio and electronic equipment, interior and exterior decoration, modification and car care products and auto parts. Visitors are predominantly auto retailers and wholesalers.

The value of the unaudited gross assets subject to the Transaction was approximately RMB4.9 million (equal to approximately GBP0.5 million) as at 30 June 2011 and the unaudited adjusted profits before tax attributable to the assets for the year ended 31 December 2011 was approximately RMB11.3 million (equal to approximately GBP1.1 million).

Douglas Emslie, Tarsus Group Managing Director, said:

"This transaction is a further important step towards achieving our Project 50/13 objective of deriving half our revenues from emerging markets in 2013, following the Life Media deal in Turkey announced in March.

"GZ Auto is an excellent fit with our strategic objectives of expanding our business in emerging markets and in a market sector that is in transition.

"GZ Auto has grown quickly to become the largest exhibition in the Auto Aftermarket sector in China. We are excited by the opportunity to continue to drive organic growth from this product both in China and internationally."

For further information contact:

 
 Tarsus Group plc 
 Douglas Emslie, Group Managing 
  Director                         020 8846 2700 
 Dan O'Brien, Group Finance 
  Director                         020 8846 2700 
 
 College Hill: 
 Adrian Duffield /Kay Larsen       020 7457 2020

There will be an analyst conference call today at 8.00am - please contact Lucy Moseley at lucy.moseley@collegehill.com or on telephone 020 7457 2020 for details.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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