UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of April
2020
PEARSON plc
(Exact
name of registrant as specified in its charter)
N/A
(Translation
of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address
of principal executive office)
Indicate
by check mark whether the Registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F
X
Form 40-F
Indicate
by check mark whether the Registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes
No X
Pearson announces completion of sale of remaining 25% stake in
Penguin Random House
1st April
2020
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Pearson,
the world's learning company, has today completed the sale of its
remaining 25% stake in Penguin Random House for approximately $675m
(£530m1)
to Bertelsmann SE & Co KGaA ("Bertelsmann"). The transaction
was announced on 18th December
2019 and completes Pearson's exit from the venture which, going
forward, will be wholly owned by
Bertelsmann.
In our
announcement in December, we stated our intention to return
£350m of net proceeds to our shareholders through a share
buyback programme, which we subsequently commenced in early 2020.
In our trading update on 23rd March,
in light of the rapidly changing environment caused by the COVID-19
pandemic, we further stated that the Board had decided it was
prudent to pause the share buyback with approximately £167m of
the £350m share repurchase programme completed to
date.
Pearson has
significant financial headroom with approximately £1bn in
total liquidity immediately available from cash and our Revolving
Credit Facility at the end of February 2020. Given the current
circumstances, we are looking at all options to maximise our
liquidity and therefore will retain the proceeds from the disposal
of our 25% stake in Penguin Random House to further strengthen our
short-term financial position.
John
Fallon, Pearson's chief executive, said: "As our venture
with Bertelsmann comes to an end, we wish our colleagues and
authors in Penguin Random House every future success. While we
are experiencing unprecedented times as a result of COVID-19, we
are taking all precautionary measures to protect our business. Our
balance sheet is strong, our net debt is
relatively low, and we have good liquidity. Furthermore,
the growing interest in online learning puts us in a strong
position given our global leadership and investment in this
area."
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Notes
1 Based
on $/£ exchange rates of 1.27
Contacts
Investor Relations
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Jo
Russell
Anjali
Kotak
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07785
451266
07802
890724
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Media
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Tom
Steiner
Gemma
Terry
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07787
415891
07841
363216
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Brunswick
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Charles
Pretzlik, Nick Cosgrove, Simone Selzer
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0207
404 5959
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Forward looking statements: Except for the historical information
contained herein, the matters discussed in this statement include
forward-looking statements. In particular, all statements that
express forecasts, expectations and projections with respect to
future matters, including trends in results of operations, margins,
growth rates, overall market trends, the impact of interest or
exchange rates, the availability of financing, anticipated cost
savings and synergies and the execution of Pearson's strategy, are
forward-looking statements. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that will occur in future. They
are based on numerous assumptions regarding Pearson's present and
future business strategies and the environment in which it will
operate in the future. There are a number of factors which could
cause actual results and developments to differ materially from
those expressed or implied by these forward-looking statements,
including a number of factors outside Pearson's control. These
include international, national and local conditions, as well as
competition. They also include other risks detailed from time to
time in Pearson's publicly-filed documents and you are advised to
read, in particular, the risk factors set out in Pearson's latest
annual report and accounts, which can be found on its website
(www.pearson.com/corporate/investors.html). Any forward-looking
statements speak only as of the date they are made, and Pearson
gives no undertaking to update forward-looking statements to
reflect any changes in its expectations with regard thereto or any
changes to events, conditions or circumstances on which any such
statement is based. Readers are cautioned not to place undue
reliance on such forward-looking statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PEARSON
plc
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Date: 01
April 2020
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By: /s/
NATALIE WHITE
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Natalie
White
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Deputy
Company Secretary
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