The McGraw-Hill Companies Inc. has bought back some of its stock from a trust and a foundation established by the late Harold W. McGraw, Jr., who died in 2010. Both will continue to be significant shareholders of the company.
In an SEC filing, McGraw-Hill reported that on Thursday (6/23) it agreed to purchase 2,297,627 shares of its common stock from the Trust and 156,887 shares from The Harold W. McGraw, Jr. Family Foundation for estate administration purposes. Once the transaction closes, the Trust and the Foundation will continue to hold 3,287,516 shares and 619,310 shares, respectively.
The shares will be purchased from the Trust and the Foundation at a discount of 1.375% from the June 23, 2011 New York Stock Exchange closing price of $40.07. “This discount was agreed to following receipt of independent financial and legal advice,” the filing stated.
“The Company has been advised by representatives of the Trust that it expects to use the after-tax net proceeds from the sale of its shares primarily for bequests pursuant to the terms of the Trust, including the funding of trusts for the benefit of Harold W. McGraw III, Robert P. McGraw and other McGraw family members. The Company has been advised by the Foundation that it expects to use the after-tax net proceeds from the sale of its shares to fund its charitable purposes,” McGraw-Hill said in the SEC filing.
Harold W. “Terry” McGraw III is the current CEO of the company and his brother, Robert, is a director.
The company recently announced plans to seek the sale of its four television stations, which are its only broadcast properties.