The Lemon Fool

monabri wrote:I seem to recall reading that the security of Pearson's learning materiels could be easily by-passed thus losing them revenue. Does this solve the problem and,if so, why actually buy it?

ReformedCharacter wrote:

monabri wrote:I seem to recall reading that the security of Pearson's learning materiels could be easily by-passed thus losing them revenue. Does this solve the problem and,if so, why actually buy it?

IIRC Pearson's security problem was due to the ability to manipulate a URL to gain access to materials that should have been paid for. It didn't sound as if it would have taken more than a little work by someone who knew what they were doing to fix.

RC

The directors are proposing a final dividend of 14.2p per equity share, payable on 6 May 2022 to shareholders on the register at the close of business on 25 March 2022. This final dividend, which will absorb an estimated £107m of shareholders' funds, has not been included as a liability as at 31 December 2021.

Statement regarding Pearson plc ("Pearson")

Apollo Global Management, Inc. and its subsidiaries ("Apollo"), on behalf of certain of its affiliated funds, notes the recent market speculation in relation to Pearson and confirms that Apollo is in the preliminary stages of evaluating a possible cash offer by certain of Apollo's affiliated funds for Pearson.

BullDog wrote:Nick Train's lifeboat just arrived

monabri wrote:

BullDog wrote:Nick Train's lifeboat just arrived

A "lifebuoy" for ULVR might come along.... (see what I did there! )

BullDog wrote:Nick Train's lifeboat just arrived

On 7 March 2022, Pearson received a second unsolicited, preliminary and highly conditional proposal from Apollo regarding a possible cash offer for the entire issued and to be issued share capital of the Company at 854.2 pence per share (including the FY 2021 dividend of 14.2 pence per share which has been announced but not yet paid) (the "Second Proposal").

The Board of Pearson considered the Second Proposal, together with its financial and legal advisers, and concluded that it significantly undervalued the Company and its future prospects. Accordingly, the Board of Pearson unanimously rejected the Second Proposal.

The Board is confident that the lifelong learning strategy set out in March 2021 will create sustainable, long-term value for Pearson stakeholders and that the results for FY 2021 demonstrated the building momentum as Pearson executes on this new strategic vision. The Board is also mindful of its fiduciary duties in the event that an appropriate proposal is forthcoming.

tjh290633 wrote:At about 17% up, at 765p, it is still well short of that offer. Will the market wake up to the bid, or will it write it off?

TJH

bluedonkey wrote:

tjh290633 wrote:At about 17% up, at 765p, it is still well short of that offer. Will the market wake up to the bid, or will it write it off?

TJH

Looks like the market has now woken up, price up 8% today, closing at 826p.

Further to the announcements made by Apollo Global Management, Inc. and its subsidiaries ("Apollo"), on behalf of certain of its affiliated funds, and Pearson on 11 March 2022, Apollo notes that it has been unable to reach agreement with the board of Pearson as to the terms of an offer for the entire issued and to be issued share capital of Pearson.

Accordingly, Apollo confirms that it does not intend to make an offer for Pearson. This is a statement to which Rule 2.8 of the Code applies.

Pearson notes today's announcement from Apollo that it is no longer evaluating a possible cash offer for the Company and that it is consequently bound by the restrictions under Rule 2.8 of the City Code of Takeovers and Mergers.

Highlights

· Ongoing strategic and operational progress, with underlying sales growth of 7%. 2022 adjusted operating profit guidance reaffirmed.

· D irect to consumer strategy strengthened with acquisition of Mondly further enhancing our position in English Language Learning.

· First tranche of £350m share buyback commenced.

Andy Bird, Pearson's Chief Executive, said:

"Pearson has continued to make strong strategic, operational and financial progress through the first quarter. Underlying sales grew by 7%, and we remain on track to deliver on our 2022 financial expectations and medium term guidance.

"Our acquisition of Mondly, one of the world's leading online language learning platforms, is another exciting strategic development. It strengthens Pearson's direct to consumer strategy and supports our ambition to become the global leader in English language learning for committed learners.

"We remain sharply focused on the successful execution of our strategy and we are encouraged by the momentum we are seeing across the business."

Pearson announces that it has agreed to sell its local K12 Courseware businesses in Italy and Germany to Sanoma Corporation, a leading European K12 learning services company operating in 11 countries and listed in Nasdaq Helsinki (SAA1V). The headline consideration of this transaction is £163m, which will be paid in cash on completion, subject to typical working capital adjustments. Under the terms of the transaction, Pearson will also enter into an agreement with Sanoma for it to distribute Pearson's English Language Teaching products in Italy.

As previously stated, the proceeds of this transaction were anticipated in the decision to commence Pearson's £350m share buyback programme, which is progressing well, with over £100m in shares repurchased since launch.

Highlights

· Strong financial performance with underlying sales growth of 6% and adjusted operating profit up 22%. Full year expectations reaffirmed.

· Continued strategic and operational momentum across the business.

· Accelerating our digital journey with the development of Pearson's lifelong learning ecosystem.

· At least £100m of further efficiencies identified and to be delivered in 2023; accelerates our improved margin expectation to 2023 from 2025.

· We are launching a strategic review of our OPM business.

Andy Bird, Pearson's Chief Executive, said:

"Pearson has delivered another encouraging financial performance in the first half of the year. We continue to make excellent strategic and operational progress, with momentum across the business. We are already seeing clear benefits from our increasingly diverse learning ecosystem, with Pearson serving more people across their lifelong learning journeys. Our digital strategy is progressing well; Pearson+ grew to 4.5m registered users, increasingly taking us direct to consumers.

"Our focus on delivery and execution remains and full year 2022 expectations are reaffirmed. In addition, the more integrated platform we are building across the company is creating efficiencies, underpinning our new guidance for accelerated margin improvement. We have a robust balance sheet which, together with our cash generation, will support continued investment in growth and create value for our shareholders."