Pearson announced that it has agreed to sell its 50% stake in The Economist Group for £469 million to EXOR S.p.A and The Economist Group, payable in cash.
Out of the 50% stake, EXOR S.p.A. has agreed to purchase 27.8% shares for consideration of £227.5 million and all of the B special shares for consideration of £59.5 million from Pearson.
Remaining shares will be repurchased for a consideration of £182 million by The Economist Group.
The Economist Group has said that the repurchase of the shares will be part-funded by the sale of the Economist Complex, which has been the home of the editorial team since the 1960s.
This transaction is expected to be closed during the fourth quarter of 2015 subject to a number of regulatory and other approvals.
As per Person, proceeds generated out of this deal will be used for general corporate purposes and investment in its global education strategy.
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.”
Rupert Pennant-Rea, the chairman of The Economist Group, said “We have been blessed over many years to have had in the Financial Times and subsequently Pearson, a shareholder that understood and supported the ethos of the Group. We all owe them a considerable debt.”