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Pearson PLC on Wednesday said a third takeover proposal made by Apollo Global Management Inc ‘significantly’ undervalued the company and its future prospects.
Pearson therefore rejected the offer by the New York-based private equity and investment management firm, it said. Apollo previously confirmed that it now doesn't intend to make a formal offer for Pearson.
Shares in Pearson were down 11% at 692.20 pence on Wednesday morning in London following the announcement.
Pearson said the third proposal by Apollo was 884.2 pence per share in cash. This price included a 2021 dividend of 14.2p per share. It was unanimously reject by the board.
Apollo had made two cash offers for the London-based education publisher in November and March. Both of these offers were rejected.
Pearson said the first rejected proposal, received in November, was for a possible cash offer of 800p per share. A second proposal at a price of 854.2p per share - including the 2021 dividend of 14.2p per share - was received in March. Pearson said it ‘considered’ the offer but also ‘unanimously’ rejected this offer.
The London-based education publisher said it is ‘confident’ that its direct to consumer, lifelong learning strategy set out in March 2021 will create sustainable, long-term value for Pearson stakeholders.
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