Thomson Reuters Announces Sale of Remaining Stake in London Stock Exchange Group

Rhea-AI Summary

Thomson Reuters (TSX/NYSE: TRI) announced on May 15, 2024, the sale of its remaining stake in London Stock Exchange Group (LSEG).

Along with Blackstone-affiliated investment funds, the company sold 17.3 million LSEG shares at £91.50 per share.

The shares were sold to institutional and retail investors.

Thomson Reuters owned 4.3 million of the shares sold and expects to earn approximately $0.5 billion in pre-tax net proceeds from this transaction.

Following the sale, Thomson Reuters will no longer hold any interest in LSEG.

Positive

• Sale of 17.3 million shares at £91.50 each.
• Expected pre-tax net proceeds of approximately $0.5 billion.
• Complete exit from LSEG stake, reducing potential market risks.

Negative

• Loss of future potential gains from LSEG stake.
• Dependency on other investments and revenue streams post-sale.

Insights

Financial Analyst

Thomson Reuters' sale of its remaining stake in the London Stock Exchange Group (LSEG) involves significant financial implications for both companies. Thomson Reuters will receive pre-tax net proceeds of approximately $0.5 billion from the transaction. This influx of cash can potentially be used to reduce debt, invest in growth opportunities, or return capital to shareholders through dividends or stock buybacks.

For investors, this sale may signal Thomson Reuters' strategic shift towards focusing more on its core businesses in legal, tax, accounting and media solutions. Diversifying away from its LSEG stake could allow the company to reinvest in areas that align more closely with its long-term growth strategy.

However, this detachment from LSEG could also mean losing out on future appreciation of LSEG stocks, especially if LSEG continues to perform strongly in the market. Investors should consider both the immediate financial benefits and the potential opportunity costs associated with this divestment.

Market Research Analyst

From a market perspective, the sale of shares to institutional and retail investors indicates a high level of market confidence in LSEG's future performance. The pricing of shares at £91.50 each reflects a substantial valuation, suggesting robust demand and positive investor sentiment towards LSEG.

For Thomson Reuters, this transaction may lead to enhanced liquidity and financial flexibility. By monetizing its stake in LSEG, the company can redirect funds to reinforce its market positioning in the specialized software and intelligence solutions industry. This strategic move could potentially strengthen its competitive edge against other players in the market.

Retail investors should note that this transaction may lead to short-term fluctuations in Thomson Reuters’ stock price due to changes in market sentiment and adjustments in the company’s portfolio composition. Long-term stability, however, would largely depend on how effectively the proceeds from this sale are reinvested into growth initiatives.

TORONTO, May 15, 2024 /PRNewswire/ -- Thomson Reuters (TSX/NYSE: TRI) announced today that it and certain investment funds affiliated with Blackstone collectively sold 17.3 million London Stock Exchange Group PLC (LSEG) shares that they co-own for a price of £91.50 per share. The sale was conducted through a placement to institutional investors and an offer to retail investors. Following the settlement of the transaction, Thomson Reuters will no longer hold any interest in LSEG.

Of the shares sold, approximately 4.3 million shares were indirectly owned by Thomson Reuters. Upon the closing of the transaction, Thomson Reuters expects to receive pre-tax net proceeds of approximately $0.5 billion.

Thomson Reuters

Thomson Reuters (TSX/NYSE: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth, and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com.

CONTACTS

MEDIA
Gehna Singh Kareckas
Senior Director, Corporate Affairs
+1 613 979 4272
gehna.singhkareckas@thomsonreuters.com

INVESTORS
Gary E. Bisbee, CFA
Head of Investor Relations
+1 646 540 3249
gary.bisbee@thomsonreuters.com

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SOURCE Thomson Reuters

FAQ

What is the significance of Thomson Reuters' sale of LSEG shares?

Thomson Reuters sold its remaining 17.3 million shares in LSEG, expecting to receive approximately $0.5 billion in pre-tax net proceeds.

How many LSEG shares did Thomson Reuters sell?

Thomson Reuters and Blackstone-affiliated funds sold 17.3 million LSEG shares.

What was the sale price per LSEG share in the Thomson Reuters transaction?

The LSEG shares were sold at a price of £91.50 per share.

What will Thomson Reuters receive from the sale of LSEG shares?

Thomson Reuters expects to receive approximately $0.5 billion in pre-tax net proceeds.

What is the impact of the sale on Thomson Reuters' stake in LSEG?

Following the sale, Thomson Reuters no longer holds any interest in LSEG.