Pearson in EUR 743m deal to sell media group

14th December 2004, Comments 0 comments

14 December 2004, LONDON - British publishing group Pearson said it had agreed to sell its 79-percent stake in Spanish media group Recoletos to an investment group formed by a consortium of Spanish investors for EUR 743 million. The investment group, Retos Cartera, has made a cash offer for the whole of Recoletos, valued at EUR 941m or EUR 7.20 per share, said Pearson, owner of the Financial Times daily newspaper.

14 December 2004

LONDON - British publishing group Pearson said it had agreed to sell its 79-percent stake in Spanish media group Recoletos to an investment group formed by a consortium of Spanish investors for EUR 743 million.
 
The investment group, Retos Cartera, has made a cash offer for the whole of Recoletos, valued at EUR 941m or EUR 7.20 per share, said Pearson, owner of the Financial Times daily newspaper.

Retos Cartera's tender offer represents a 19 percent premium to Recoletos' closing share price of EUR 6.06 on Monday.

"Now that its (Recoletos) strategy - in sport, lifestyle and general publications - is taking it further away from the FT Group's focus on business and financial news and information, it is time for us to part company," Pearson chief executive Marjorie Scardino said in a statement.

Recoletos publishes Spain's leading business title Expansion and sports paper Marca - the country's most read daily, Pearson said.

Retos Cartera has agreed that Pearson will have first right of refusal to buy Expansion, if Recoletos sells it within 18 months of completion of the offer.

The consortium of investors behind Retos Cartera includes members of the Recoletos management team, individual Spanish investors and the Banesto banking group.

Meanwhile, the sale of Pearson's stake was subject to regulatory approval and expected to be completed in the first quarter of 2005, the British media group said.

Retos Cartera has agreed that, on completion of the offer, Recoletos will enter into a co-operative agreement with Pearson.

"The agreement will cover ongoing business relationships between the two groups including paper purchasing, editorial content sharing, joint printing arrangements and advertising sales," Pearson said.
  
[Copyright EFE with Expatica]

Subject: Spanish news

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