By Tapan Panchal
LONDON-- Pearson PLC has agreed to sell its 50% stake in the
publisher of the Economist magazine to the unit's existing
shareholders for GBP469 million ($730.62 million) in cash, the
company's latest move to focus on education.
Pearson on Wednesday said it would sell 27.8% of the Economist
Group's ordinary shares and all of the B special shares to Exor
SpA, the investment vehicle of Italy's Agnelli family, for GBP287
million. The rest of its ordinary shares in the publisher will be
repurchased by the Economist Group for GBP182 million.
The disposal follows Pearson's recent sale of the FT Group,
which includes the Financial Times newspaper, to Nikkei Inc. of
Japan for GBP844 million.
Exor is run by John Elkann, an Agnelli family scion, who serves
as the vehicle's chairman and chief executive. It already holds
less than 5% of the Economist Group and, among other business
interests, controls Fiat Chrysler Automobiles.
Other shareholder in the Economist Group include the Cadbury and
Rothschild families, as well as existing and former staff.
As well as owning the Economist magazine, a weekly business and
international news publication with a circulation of 1.6 million,
the publisher owns data firm the Economist Intelligence Unit and CQ
Roll Call.
Pearson said it expected the deal to close in the fourth quarter
and to use the proceeds to invest in its global education
strategy.
Write to Tapan Panchal at Tapan.Panchal@wsj.com
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