12th August 2015
Following its sale of The Financial Times, Pearson has now agreed to sell its 50% stake in The Economist Group for £469m.
Exor, the Italian investment company controlled by the Agnelli family, has agreed to purchase 27.8% of The Economist Group’s ordinary shares for £227.5m and all of its B special shares for £59.5m from Pearson.
The proceeds will be used by Pearson for general corporate purposes and investment in its global education strategy. Pearson’s remaining ordinary shares will be repurchased by The Economist Group for £182m.
John Fallon, Pearson’s chief executive, said: “Pearson is proud to have been a part of the Economist’s success over the past 58 years, and our shareholders have benefited greatly from its growth. We have enjoyed supporting the company as it has built a global business, sustaining the excellence of its journalism and ensuring it is read more widely. We wish all our colleagues at The Economist every future success. Pearson is now 100% focused on our global education strategy. The world of education is changing rapidly and we see great opportunity to grow our business through increasing access to high quality learning globally.”
In 2014, The Economist Group contributed £21m to Pearson’s operating income. The transaction is subject to a number of regulatory approvals