South African publishing group Caxton and CTP Publishers and Pearson plc are on track towards forming a new educational publishing unit in southern Africa, Caxton said on Friday.

"Caxton has been notified by Longman Group Limited (a unit of Pearson plc) that it is in a position to complete the steps necessary to form Pearson SA," Caxton said.

As part of the deal, Caxton is selling 35 percent of its 50 percent stake in Maskew Miller Longman Holdings to Pearson plc – the owner of the Financial Times - for £45.5-million in cash and a 15 percent stake in the new Pearson Southern Africa Education Group.

The transaction is still subject to regulatory and shareholder approvals.

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