LONDON, UK: Hyve Group plc, the next-generation global events business, announced the proposed disposal of its Russian business. A wholly owned subsidiary of the company has entered into a conditional agreement with Rise Expo Limited with respect to the sale of the Russian Business for a maximum cash consideration of £72 million, wholly structured as earn-out consideration payable over a ten-year period.
The disposal is conditional on, among other items, the approval of Hyve shareholders, consent from the Group’s existing lenders and regulatory approval.
Given the ongoing conflict between Russia and Ukraine and its implications, the Company announced on 15 March 2022 that it had taken the decision to formally exit the Russian market.
The Disposal comprises the sale to Rise of the Group’s Russian subsidiaries, and international sales operations relevant to the Russian Business.
The Company also published a trading update for its half year to 31 March 2022 providing further details of the Company’s strong trading performance in the first half, reporting revenue of approximately £58 million, excluding Russian revenues of c. £17 million.
Forward bookings for the full year are currently £103 million, excluding bookings for Russian and Ukrainian events, despite continued COVID-19 disruption in some geographies. The Group’s liquidity position is strong:
Adjusted net debt2 as of 31 March 2022 was approximately £62 million3 (2021 H1: £92m) and total available liquidity was approximately £143 million (2021 H1: £123 million)
The Group anticipates net debt for the year ending 30th September 2022, to be in the range of £80 million – £100 million, adjusted for the Disposal of the Russian Business. This compares to previous guidance of £70 million – £90 million, which included the Russian Business
The Group’s existing facilities expire in December 2023, with leverage and interest cover covenants waived up to and including March 2023, replaced by a minimum liquidity test. The next leverage and interest cover test date is therefore June 2023, by which time the Group expects to have refinanced (or it would otherwise require agreement from its lenders to provide further covenant waivers prior to that time).