Irish-led events firm Arena sells to Middle East investors for £71m

The Irish-led Arena Events Group has agreed to a £71m (€84m) takeover by a Middle-Eastern consortium.

Arena, which for the past 15 years has been headed by Dubliner Greg Lawless, provides a range of events products and services, including seating, scaffolding, bar hire, and graphics.

It has worked on a number of high-profile events, including Wimbledon, the British Open, and the Ryder Cup.

The London-listed company is being acquired by Abu Dhabi-based IHC Industrial Holding and Saudi Arabian-based Tasheel Holding Group.

Tasheel has been a major shareholder in Arena since early last year, participating in capital raises by Arena to strengthen its balance sheet due to the ongoing impact of the Covid-19 pandemic.

Should the deal be approved, Mr Lawless, a former director of corporate finance at stockbrokers Davy, could make up to £3.4m (€4m) from his shares in the company.

Following completion of the acquisition, Mr Lawless plans to step down as chief executive of the group.

However, it is intended that he will take up a senior advisory role to the new board, with a particular focus on advising in relation to the future acquisition strategy of the company.

The deal, which is subject to approval by shareholders and the regulator, will see the company sold for 21p per share.

Last November, shares in the company, which has over 1,200 employees, traded as low as 4p, as the pandemic heavily impacted its turnover due to the warehousing of live sports events.

Shares had recovered and were trading at 14p in London on Tuesday, before leaping over 42pc when the news broke yesterday evening.

Ken Hanna, chairman of Arena, said: “The offer from the consortium represents a substantial premium to the Arena Group’s existing share price and recognises the quality of Arena, the agility of the business to successfully rebound from the Covid pandemic and its standing amongst its peers as the world of events returns to normality.

"As a privately owned group, the new owners will help Arena grow through additional funding which guarantees the future of the firm as a leader in the event rental market. In this regard, both IHC and Tasheel are perfect partners for Arena, as they provide enormous security and backing for the business going forward,” he added.

In the 12 months to April 30, Arena reported adjusted earnings of £5.7m, down from £13.2m the prior year, as the pandemic disrupted live events across the world.