23rd Jul 2015 14:25
LONDON (Alliance News) - Pearson PLC Thursday said it is selling FT Group, which includes the Financial Times newspaper, to Japanese media group Nikkei Inc for GBP844 million in cash, meaning the company will now be focused on its education strategy.
"Pearson has been a proud proprietor of the FT for nearly 60 years. But we've reached an inflection point in media, driven by the explosive growth of mobile and social. In this new environment, the best way to ensure the FT's journalistic and commercial success is for it to be part of a global, digital news company," Pearson Chief Executive John Fallon said in a statement.
FT Group contributed GBP334 million of sales and GBP24 million of adjusted operating income to Pearson in 2014, the seller said.
The deal does not include property at One Southwark Bridge in London, which is the FT's offices, nor Pearson's 50% stake in The Economist Group. It didn't say whether or not the Vedomosti joint venture is included.
The sale of the group requires regulatory approval. It is expected to close during the fourth quarter of 2015.
A contribution of about GBP90 million is expected to be made to the Pearson group pension plan once the deal closes.
Pearson said it has committed to fund the pension plan to self-sufficiency in the near term.
Pearson expects to pay tax on disposal of about GBP60 million.
Pearson shares were up 2.7% at 1,240.35 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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