Pearson to sell 22% stake in Penguin to Bertelsmann for ‘about’ $1bn
Pearson will keep a 25% stake in the iconic book publisher, but will recapitalise the business and extract a dividend
Stockholm/London — Pearson Plc has agreed to sell a 22% stake in Penguin Random House to its partner in the publishing unit, majority owner Bertelsmann, for about $1bn, in a deal that strengthens its balance sheet while retaining some earnings from the profitable business. After the sale, Pearson will return about £300m ($386m) of surplus capital to shareholders through a share buyback. It will keep a 25% stake in the iconic book publisher, Pearson said in an e-mailed statement. Pearson, struggling in its main US education business, said in January that it planned to sell its entire 47% stake in Penguin Random House, or recapitalise the business and extract a dividend. The deal that resulted, valuing the Penguin Random House at $3.55bn, blended both options. The venture, which publishes books from writers that include John Grisham, Ken Follett and George RR Martin, will be recapitalised, distributing dividends to both partners. "When we sat down with Bertelsmann, it quickly became a...
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