Skip to main content

Thomson Reuters Corp. on Tuesday launched a US$9-billion share buyback, sending its shares higher, and said it would complete the sale of a majority stake in its Financial & Risk unit to Blackstone Group LP on Oct. 1.

Shares in Thomson Reuters, which had been suspended prior to the announcement, were trading at $58.03, up 3.6 per cent at 1:30 p.m. EDT in Toronto, having earlier hit $58.50 after trading recommenced, their highest level since the deal was announced on Jan. 30.

The tender offer, which expires on Oct. 2, has been priced at US$42 to US$47 a share, an 11.5-per-cent premium to the stock’s average price over the past 20 trading days, the company said in a statement. Thomson Reuters’ U.S.-listed shares were trading at US$44.94, up 3.9 per cent at 1:30 p.m. EDT.

Story continues below advertisement

The news and information provider had previously said it expected to complete the deal, which values the business at about US$20-billion, in the fourth quarter of 2018.

The company reiterated its guidance that it will receive about US$17-billion in gross proceeds when the deal closes, out of which it plans to return US$10-billion to shareholders.

As part of that process, the company said up to US$9-billion will be returned to shareholders through a tender offer for shares, which commences on Tuesday.

From the remainder of the proceeds, the company said it will redeem US$4-billion of debt, keep US$2-billion of cash on its balance sheet and use US$1-billion to cover expenses related to the transaction.

Thomson Reuters said The Woodbridge Company Ltd., the Thomson family’s investment company, would participate in the buyback and retain a 64-per-cent ownership in the company.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter