The Board of WH Smith PLC announces today that it has reached agreement to dispose of its publishing business, Hodder Headline, to Hachette Livre S.A. for £223m, comprising £210m in cash and the assumption of the Hodder Headline net pension deficit estimated at £13m. It also announces its intention to return to Shareholders up to £207m of cash, equivalent to approximately 85p per Ordinary Share.
The Board of WH Smith PLC announces today that it has reached agreement to dispose of its publishing business, Hodder Headline, to Hachette Livre S.A. for £223m, comprising £210m in cash and the assumption of the Hodder Headline net pension deficit estimated at £13m. It also announces its intention to return to Shareholders up to £207m of cash, equivalent to approximately 85p per Ordinary Share.
The Disposal is subject to regulatory approval and approval by Shareholders at an Extraordinary General Meeting. A circular to Shareholders will be posted shortly containing notice of the EGM and further details of the Disposal. In addition, it will contain details of the proposed Management Investment Plan, which was announced on 27 July 2004, and the return of cash, both of which will also be subject to Shareholder approval at the EGM.
Commenting on the announcement, Kate Swann, Group Chief Executive of WH Smith PLC, said:
"The sale of Hodder Headline is an important milestone in our strategy to simplify the structure of the Group and to focus on our core retail and news distribution businesses. On behalf of the Board, I would like to thank Tim Hely Hutchinson and his team for the contribution they have made to the Group."
Enquiries to -
WH Smith Media Relations: Louise Evans, 020 7851 8850
Greenhill (Financial Advisers to WHSmith): James Lupton/Brian Cassin, 020 7440 0400
Brunswick (PR Advisers to WHSmith): Louise Charlton/Tom Buchanan, 020 7404 5959