Vivendi Universal has moved to ease its debt burden by selling the US educational publisher Houghton Mifflin to an investment consortium for $1.66 billion.
The sale, which was initially announced in November, is a welcome fillip for Vivendi which is coming off a disastrous 2002 during which its stock and reputation took a battering.
The Franco-American media group was forced to instigate an asset disposal programme in the second half of the year after debts exceeded E19 billion (see Vivendi Launches Debt Relief Strategy). Vivendi’s share price fell by almost three-quarters during 2002 and the company’s finances remain under investigation in France and the US (see Vivendi Facing US Probe).
Jean-René Fourtou who took over as chief executive in the summer has presided over a number of sales but has also moved to consolidate the company’s hold over the French telecoms company, Cegetel (see Vivendi Swoops For Cegetel Stake).
Houghton Mifflin has been passed to a consortium comprising Thomas H. Lee and Bain Capital. Vivendi received $1.28 billion in cash while an additional $380 million of debt was taken on by the buyer.
