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(Alliance News) - Pearson PLC on Friday said it has concluded its review of its international courseware local publishing business with the sale of a majority stake in its K12 South Africa business to Novus Holdings Ltd.
The amount of the transaction is undisclosed.
Novus bought a 75% stake in Pearson South Africa Proprietary Ltd, Novus explained. It added: "The remaining 25% of Pearson SA's share capital is held by black economic empowerment partners, being Sphere RB Investments Proprietary Limited with 22.5% and Pearson Marang Education Trust with 2.5% [with] which shareholding and BEE arrangements will remain in place following the acquisition."
Pearson SA encompasses K12, technical & vocational education, and local Higher Education.
Novus, a Cape Town-based print and packaging manufacturer, explained it bought the shares as part of its restructuring as Pearson has "been pro-active in developing solutions to provide digital content to assist its stakeholders and students to participate in the migration to digital educational platforms."
Pearson also explained the deal with its own restructuring process. "The sale of this business concludes the review of our international courseware local publishing businesses, where we have achieved a blended multiple of 14.1 enterprise value/earnings before interest, tax, depreciation and amortisation [of] 2021," Pearson said.
In June, the London-based education publisher sold its Italy and Germany-based Local K12 courseware businesses to Helsinki-based Sanoma Corp in a deal worth GBP163 million.
Meanwhile, Pearson said its GBP350 million share buyback programme is progressing well, having bought back GBP170 million back as of Friday.
Pearson shares were virtually unchanged at 886.00 pence each in London on Friday morning, while Novus Holdings shares traded 1.9% higher at ZAR2.66 each in Johannesburg on Friday afternoon.
By Tom Budszus; tombudszus@alliancenews.com
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