According to Bloomberg News on Friday, Pearson’s biggest shareholder suggested the education corporation could move its listing to the US in order to increase shareholder value, placing London at danger of losing another significant business from its exchanges.
Earlier this year, activist Cevian Capital AB forced Dublin-based CRH, a building materials group, to relocate its primary listing from London to New York. According to the report, the activist identified the FTSE 100 constituent as the next company in its portfolio that would be a good fit for a move across the Atlantic.
“The majority of Pearson’s sales and management are based in the United States. The only reason it is still listed in the UK is because of its past,” Christer Gardell, the managing partner and founder of Cevian Capital,
LSEG data shows Cevian holds a 12.16% stake in Pearson.
The FTSE 100 company will join an increasing number of businesses departing London this year if Pearson moves its listing to the United States, stoking concerns that the city is quickly losing its attraction.
Among the biggest names was British chip designer Arm Holdings, which debuted on the Nasdaq in September, opting for New York’s financial centre over a return to the London stock exchange.
A number of British businesses, including the software company Sopheon and the energy infrastructure company Smart Metering Systems, are delisting as a result of agreements with private equity firms. In a 1.3 billion pound agreement, U.S. investor KKR announced last week that Smart Metering will become private.