McGraw-Hill approves special dividend in lieu of buybacks
(Reuters) - McGraw-Hill Companies Inc MHP.N said it will pay a special dividend of $2.50 a share before year-end and will drop its previously announced plan to buy back up to $200 million more of stock this year.
The announcement on Thursday follows the company's decision last week to sell its education publishing business to Apollo Global Management for $2.5 billion. McGraw-Hill expects to receive $1.9 billion in after-tax proceeds from that sale.
The company said it is paying the special dividend as part of the plan it announced last year to boost shareholder value.
McGraw-Hill had 278 million shares of stock outstanding as of October 15.
The special dividend will be payable on December 27 to shareholders of record on December 18, the company said. It will be in addition to the company's regular quarterly dividend to be paid on December 12.
(Reporting by David Henry in New York; Editing by Leslie Gevirtz)
(This story corrects the date of regular dividend payment to Dec. 12 from Dec. 15)