SPH and Temasek to merge MICE subsidiaries

SINGAPORE Press Holdings (SPH) and Temasek have entered into an agreement to merge their meetings, incentives, conventions and exhibitions (MICE) subsidiaries, according to an exchange filing on Monday.

Temasek's wholly-owned subsidiary SingEx Holdings and Sphere Exhibits, which is wholly-owned by SPH, will merge to form SingEx-Sphere Holdings.

Temasek will own 60 per cent of SingEx-Sphere, while SPH will own the remaining 40 per cent.

The pro forma book value of Sphere as at completion of the transaction is expected to be around S$12 million while the agreed transaction value of 40 per cent of SingEx-Sphere is S$24.4 million, SPH said in the exchange filing.

SingEx-Sphere "aims to be a regional MICE market leader for hybrid events, driving best-in-class solutions from a combined portfolio of events management, venue and consultancy businesses", it said in a press statement.

It added that the parties see "tremendous potential" in the MICE space, notwithstanding the short-term challenges posed by Covid-19.

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Robin Hu, chairman of SingEx, said SingEx and Sphere - with over five decades of combined experience in organising and hosting trade and consumer shows across a variety of sectors - have built a strong foundation for the MICE scene in Singapore and the region.

"The ambition of the merged entity is to continue building on its firm foundation by adding to it additional intellectual properties in the form of new events and exhibitions via both organic curation and inorganic investments," said Mr Hu, who will be appointed chairman of SingEx-Sphere.

"We believe Covid, while having a dampening impact in the short term, had given rise to new opportunities in the form of hybrid activities hitherto unimagined," he added. "Our industry is fast becoming a digitally enabled intellectual property business."

Ng Yat Chung, chief executive officer of SPH, said: "We look forward to working with Temasek to achieve SingEx-Sphere's vision and push the MICE industry in Asia-Pacific to greater heights for the benefit of both consumers and businesses."

"This merger will allow us to tap on each other's expertise, resources and networks to seize new opportunities to enhance the portfolio and achieve growth regionally," Mr Ng added.

The completion of the transaction is subject to customary closing conditions, the exchange filing noted.

Shares of SPH, which also publishes The Business Times, closed at S$1.20 on Monday, up S$0.02 or 1.7 per cent, before the announcement.