Netlink Solutions (India) Ltd will sell its exhibition business to the India subsidiary of Frankfurt-based event organiser Messe Frankfurt Exhibition GmbH for Rs 6.12 crore ($844,000).
The Mumbai-listed company will sell its entire stake in the exhibition business and 70% share of profits from exhibitions to Messe Frankfurt Trade Fairs India Pvt. Ltd, it said in a stock-exchange disclosure.
Netlink will be entitled to a 30% share of profits from 2023 onwards till it decides to sell those entitlements.
The exhibition business comprises stationery, corporate gift and kitchenware shows.
Revenues from the exhibition business were Rs 4.6 crore for the year through March 2018, up from Rs 2.93 crore for the previous year. For 2017-18, the exhibition business accounted for about 97% of the total revenue of the company, which is also into web designing and print media.
The net sales of Messe Frankfurt Trade Fairs India stood at Rs 72.9 crore for the year through March 2017, up from Rs 52.8 crore the previous year, according to VCCEdge, the data intelligence platform of News Corp VCCircle.
Frankfurt Trade Fairs has acquired Indian companies previously as well. In December 2017, it acquired Fitex India, a fitness and health event, from Haryana-based Smart Events.
In August 2017, the company acquired the Screen Print India exhibition business from Aditya Exposition. The Screen Print India exhibition has been held biennially in Mumbai since 1994 and has grown in scope covering not just screen printing but textile and digital printing, too.
