Global exhibition organiser and events group Hyve has confirmed it is considering funding options and is in early stage talks about a possible fresh investment in the company.
A Board statement, 1 June, noted recent media speculation regarding a potential investment into the company: “Building on the success of its TAG programme, which saw Hyve focus on its market leading events, as well as its early move into omnichannel, the Board is currently considering its funding options to give the company the greatest flexibility to accelerate its post pandemic growth and capitalise on the current market disruption. In assessing these options, the Board will prioritise minimal dilution to existing shareholders as well as the optionality to move quickly as earnings accretive acquisition opportunities arise. Discussions regarding any potential investment remain at an early stage and there can be no certainty that any discussions will progress to conclusion or, if they do progress to conclusion, as to the terms or size of any such potential investment.”
The Hyve statement added that, following its recent interim results announcement, the company was “well positioned for success post pandemic. The company has a strong balance sheet to trade through as markets reopen and, as was demonstrated by the recent MosBuild event, its portfolio of market leading events will come back strongly and continue to deliver good return on investment. Management also has a clear vision of the future as has been demonstrated by the ongoing evolution of the omnichannel strategy and the successful rollout of further online Meetup events.
“A further announcement will be made if required.”
The Hyve statement followed a report by Sky News on 30 May, suggesting that the company was in preliminary talks with private equity firm Carlyle about a private investment in public equity (PIPE) deal. The report suggested Carlyle is considering injecting up to £250m into Hyve. The report suggested that any such deal would require Hyve shareholder approval, and could elicit opposition from institutional investors who had helped to shore up Hyve’s balance sheet in June 2020 through a £126m (US$178.7m) rights issue.
Pictured, Hyve CEO Mark Shashoua.