Pearson Agrees To Sell 50% Stake In Economist Group For GBP469 Mln Cash

(RTTNews) - British publishing and education company Pearson Plc. (PSO, PSON.L) Wednesday said it has agreed to sell its 50 percent stake in The Economist Group for 469 million pounds, payable in cash. EXOR S.p.A. has agreed to purchase 27.8 percent of The Economist Group's ordinary shares for consideration of 227.5 million pounds and all of the B special shares for consideration of 59.5 million pounds from Pearson.

Pearson's remaining ordinary shares will be repurchased by The Economist Group for a total consideration of 182 million pounds.

In 2014, The Economist Group contributed 21 million pounds to Pearson's operating income and around 3 pence to adjusted earnings per share.

At December 31, 2014, the carrying value of Pearson's investment in The Economist Group was nil.

The transaction is expected to close during the fourth quarter of 2015. Pearson will use the proceeds for general corporate purposes and investment in its global education strategy.