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Bertelsmann seeking private equity partner to buy PRH

Bertelsmann is looking for a private equity partner to help it buy out Pearson’s stake in Penguin Random House (PRH), three sources have told Reuters. ‘It is definitely something Bertelsmann has looked into,’ one source told Reuters. ‘The main issue is whether Pearson wants to sell its stake in one deal or whether it wants to sell in phases.’ Two sources said that talks between Bertelsmann and Pearson are expected to resume next year. Bertelsmann currently owns 53% of PRH, compared to Pearson’s 47%. An analyst told Reuters that the sale of Pearson’s stake, which is estimated to be worth around €2bn (A$2.9bn), is the next logical move as the company’s strategy is focussed on education. Bertelsmann declined to comment on the story, while Pearson reiterated comments made by chief executive John Fallon earlier this month that selling its PHR stake is ‘an issue we will consider at some point but it’s more likely to be a 2017 than a 2016 issue’.


Category: International news