Joint Venture TE2 terminated
The Boards of both Expomedia Group PLC (Expomedia) and Telegraaf Media Groep (TMG) jointly announce the termination of Telegraaf Expomedia Events (TE2), a Joint Venture established by both companies in 2004.
This being due to the fact that the combination of activities of the Joint Venture turned out to be financially non-viable. Also this decision follows Expomedia ‘s previously announced policy of focussing on its core markets of Russia, India, Poland, UK and Germany.
In The Netherlands TMG will via it’s subsidiary Telegraaf Events B.V. further develop the successful and profitable portfolio of exhibitions and events in the areas of automotive (402EVENTS.COM B.V., 100%), fashion (Modefabriek B.V., 50%) and home and decorations (Ludique Events B.V., 50%). The other activities developed by the joint venture will be sold or stopped.
The changes that take place in The Netherlands will not have any consequences for the 20% stake which TMG holds in the AIM-listed company Expomedia. TMG remains a committed and supportive shareholder and, Fred Arp, CFO of TMG, will remain as a Director of Expomedia.
Commenting on the news Fred Arp stated: "Our relationship with Expomedia has been invaluable in establishing a base in, and an understanding of, the exhibition market. We fully support the change in strategy by Expomedia, as they are clearly focusing on the markets where they can make the best return. We remain a committed shareholder of Expomedia for the foreseeable future and look forward to further strengthening our relationship moving forward."
Mark Shashoua, Chief Executive of Expomedia, added: 'I would like to thank TMG for contributing to the success of the ventures established. At the time of the Group’s March results, I stated that the foundations for future growth of Expomedia’s core operations lay in its key markets of the Russia, India, Poland, UK and Germany Today’s news is an important step in continuing realignment of the business. The Board very much looks forward to building on the solid relationship established to date between the two companies.”