The outfit that publishes Scholastic magazine, one of the first news publications read by most school kids for the past 60 years, is going private.
New York-based Scholastic Inc., the largest publisher of English-language classroom magazines and children's books, has received a $73.4-million buyout proposal from SI Holdings Inc., formed by the two families that together control 84% of Scholastic's voting common shares.
Under the proposal, which has been approved by the company's board, holders of the company's non-voting common stock, which is traded over-the-counter, will receive $34 per share in cash. Owners of the Class A, or voting shares, will receive $36 per share. In National Market System trading Wednesday, Scholastic shares jumped $5.75 to close at $36.75.
Scholastic, formerly Scholastic Magazines, publishes several weekly and biweekly magazines under its Educational Periodicals division. Scholastic Magazine, now called Scholastic News and touted as "America's classroom newspaper," costs $1.95 for a year's student subscription. The company also publishes Family Computing magazine, which has 410,000 subscribers.
Sales from its elementary school book club, textbooks and filmstrips accounted for 70% of the company's 1985 revenue of $180 million. Magazine subscriptions and advertising made up the other 30%.
The Robinson family, led by Scholastic Chief Executive M. Richard Robinson, currently holds 51% of the Class A common stock outstanding. Members of the Oliver family, including Scholastic director Joseph W. Oliver, own 31%.