NEW YORK, Dec. 6, 2012 /PRNewswire-FirstCall/ -- As part of its ongoing Growth and Value Plan to generate shareholder value, The McGraw-Hill Companies' Board of Directors (NYSE: MHP) today approved a special dividend in the amount of $2.50 per share on the Corporation's common stock, payable on December 27, 2012 to shareholders of record on December 18, 2012. This special dividend payment supersedes the Company's previously announced plans to repurchase up to $200 million of stock during the remainder of the year.
McGraw-Hill announced on November 26, 2012 that it had signed a definitive agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC for $2.5 billion, subject to certain closing adjustments. The Company plans to use the proceeds of the sale, combined with the ongoing operating cash generated from its business, to sustain its share repurchase program, to make selective tuck-in acquisitions that enhance its portfolio of powerful brands and to pay off any short-term borrowing obligations. The transaction is expected to close in early 2013, subject to regulatory approval and customary closing conditions.
This special dividend is in addition to the regular quarterly dividend payment that will be paid on December 12, 2012 to shareholders of record on November 28, 2012.
About The McGraw-Hill Companies McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw Hill Financial's leading brands include Standard & Poor's, S&P Capital IQ, S&P Dow Jones Indices, J.D. Power and Associates, and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Company has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
Forward-Looking Statements Statements in this news release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. In particular, the sale transaction described is subject to certain risks and uncertainties, including the ability of the buyer to obtain financing, the ability to obtain all required regulatory approvals and the anticipated tax treatment of the sale and related transactions, as well as risks relating to any unforeseen liabilities, losses, declines in economic performance or future prospects. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, which can be obtained at its website at http://www.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Patti Rockenwagner Senior Vice President, Corporate Communications (212) 512-3533 email@example.com
Chip Merritt Vice President, Investor Relations (212) 512-4321 firstname.lastname@example.org
SOURCE The McGraw-Hill Companies