Economist Group shareholders in talks to buy out Pearson

Pearson is in negotiations to sell its 50 per cent stake in the Economist Group, publisher of the Economist magazine, to other existing shareholders in the group, according to people familiar with the situation.

The talks, which come in the same week as Pearson's £844 million sale of the FT Group to the Nikkei Group of Japan, could in effect complete the British company's transformation from a diversified family conglomerate to a business focused solely on education.

Pearson’s stake would be worth about £400 million, two people close to the situation said. That would give the Economist Group a similar valuation to the FT Group, even though its operating profits are more than double.

The potential buyers include families such as the Schroders, the Cadburys, and Rothschilds, one person close to the situation said.

Any deal would have to be approved by the four trustees of the Economist Group, whose role is to preserve “the continued independence of the ownership”. Pearson declined to comment.

–(Copyright The Financial Times Limited 2015)