Sunday 22 September 2019

Pearson completes sale of 22% stake in Penguin Random House

The deal to offload a stake in the publisher was first announced in July.

Penguin Random House stake sale
Penguin Random House stake sale

By Kalyeena Makortoff, Press Association City Reporter

Pearson has successfully unloaded a 22% stake in its publishing unit Penguin Random House to Germany’s Bertelsmann for around one billion US dollars (£761 million).

The proceeds of the sale, which was originally announced in July, will help fund a £300 million share buyback programme, and allow the company to strengthen its balance sheet and invest in its digital transformation.

The education group still holds a 25% stake in Penguin Random House following the transaction.

Pearson has been working to shore up its finances following a recent string of profit warnings.

The company in February posted a dismal set of annual results, which included a £2.5 billion impairment charge, pushing the former Financial Times owner to a record £2.6 billion loss.

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