McGraw-Hill Announces $2.50 Special Dividend
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.
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