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
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.
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.