German media group Bertelsmann AG isn't ruling out further
acquisitions this year, following the merger between its consumer
book division Random House with Penguin, according to an interview
with the chief executive published in the daily Sueddeutsche
Tuesday.
"I wouldn't rule out one or the other transaction in the second
half of the year," Chief Executive Thomas Rabe is quoted as
saying.
The company is flush after garnering 1.4 billion euros ($1.82
billion) in gross proceeds from the sale of 25.5 million RTL shares
in late April.
"Over the next three years we could invest several billion euros
in our core operations as well as in our growth areas, such as
music, education and business information," Mr. Rabe says.
Bertelsmann targets annual sales growth of 5% to 7%, and sales
are expected to reach EUR18 billion in the coming year, Mr. Rabe
says.
"After that we're not far away from EUR20 billion," he
notes.
The company is focusing on restructuring its service unit
Arvato, but a listing isn't on the cards for now, Mr. Rabe
says.
A listing is possible for Penguin Random House, he notes.
Bertelsmann has a 53% majority stake in the merged company. There
is a clear optional exit clause for Pearson PLC (PSO), the owner of
Penguin. Pearson would initially be required to offer Bertelsmann
its stake, but Bertelsmann has no obligation to purchase it, he
says. If Bertelsmann doesn't buy the stake, Pearson would have the
right to demand a listing.
Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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