Pearson, the owner of the Financial Times and Penguin books, is to sell its 50% stake in FTSE International Limited to the London Stock Exchange.
Pearson will receive £450m for its stake in FTSE, which manages and creates equity, bond and alternative asset class indices. FTSE's current portfolio extends to 200,000 products.
The LSE will now be the 100% owner of FTSE which, in 2010, reported total revenues of £98.5m and total earnings before interest, tax, depreciation and amortisation of £40m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In 2011 Pearson expects FTSE to make a total post-tax contribution to adjusted earnings of approximately £18m or 2.2p per share.
Pearson is at pains in today's press release to point out this sale is its exit "from companies that are primarily providers of financial data". Pearson's aim is to make money from its FT brand through the subscription model.
Marjorie Scardino, Pearson's chief executive, said: "Proud as we are of (our) long association, FTSE's strategy is different from our own. We wish it every success as we continue to build our digital business information services around the Financial Times."
Pearson shares are up 13% so far this year. Over the same time the FTSE 100 index is down 4.87%.
BS
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
