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  Pearson Annual Report 1997    

Notes to the Accounts


31. Post balance sheet events

Recoletos and Telefónica
On 25 September 1997 Pearson announced a strategic alliance between Racoletos and Telefónica de España SA, the Spanish telecommunications group. Telefónica will pay Pts23.1bn (£90m) to subscribe for a 20% stake in Racoletos, who will then invest Pts11.54bn (£45m) of the proceeds to subscribe for a 10% stake in Antena 3, a commercial television channel in Spain. The transaction is expected to close on 16 March 1998.

Société Européenne des Satellites SA (S.E.S.)
On 9 February 1998 Pearson sold its 6.3% shareholding in S.E.S. for £159.5m. The sale was made cum dividend and consequently £4.2m will be included in operating profit leaving a profit of £132.2m before tax estimated at around £25m.

Law and Tax publishing businesses
On 2 March 1998 Pearson sold its specialist Law & Tax publishing businesses for £70m giving rise to a profit of £61m, before tax estimated at £14m. Of the £70m consideration, £19.5 relates to the sale of the Federal Publications business which is conditional on Hart-Scott-Rodino clearance in the USA.

Mindscape Inc.
On 6 March 1998 Pearson announced that it is to sell Mindscape Inc, the consumer software publisher, for $150m (£91m) in cash and stock, giving rise to an estimated loss on sale of £212m (see note 5). This is also conditional on Hart-Scott-Rodino clearance in the USA.

1997 Annual Report
* Group summary
* Information
* Education
* Entertainment
* Investment banking
* Chairman's statement
* Chief Executive's review
* Financial Review
* Financial Policy
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Note of historical cost profits and losses
* Reconciliation of movements in equity shareholders' funds
* Principal subsidiaries and associates
* Five year summary
* Shareholder information
* Notes to the accounts

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