Media and printing group Caxton, has entered into an agreement disposed of its remaining 15% in\u00a0Pearson Holdings Southern Africa in a deal worth\u00a0R703.3 million.<\/p>\n
Caxton will dispose of 7,500 ordinary shares in Pearson Holdings Southern Africa (PHSA) to Longman Group, the holding company of PHSA.<\/p>\n
In 2009 Caxton disposed of 35% of its 50% shareholding in PHSA to Longman.<\/p>\n
The agreement entered into on, or about 22 October 2008 – governing the initial disposal – contained put and call options on the remaining shareholding of 15%. The company has now\u00a0exercised its option to dispose of the investment.<\/p>\n
Caxton will dispose of the residual shareholding to Longman for R703.3 million in cash, payable on delivery of the share certificates evidencing the residual shareholding to Longman.<\/p>\n
The fair value of the residual shareholding is R353.2 million.<\/p>\n
The proceeds of the disposal will be added to the existing cash reserves of the company, Caxton said.<\/p>\n
On Wednesday (30 August), Caxton\u00a0reported a 7% rise in turnover for the year ended June 2013.<\/p>\n
Profit from operating activities was up by 12.2% and depreciation increased from R226.5 million to R241.6 million.<\/p>\n
Headline earnings improved by 11.7% from 109.8 cents to 122.6 cents per share.<\/p>\n
The board has declared a dividend of 55.0 cents per ordinary share (gross) and a preference dividend of 450.0 cents per share (gross) for the year ending 30 June 2013.<\/p>\n
Caxton owns 41% in Moneyweb, while additional brands include\u00a0Farmers Weekly, The Citizen, and a number of\u00a0community\u00a0titles.<\/p>\n