Thomson Reuters to Use LSE Stake Sale Proceeds for Growth Opportunities, Holder Returns

By Robb M. Stewart

OTTAWA--Thomson Reuters Corp. said Monday it plans use the roughly $1 billion in proceeds it expects from the sale of shares in the London Stock Exchange to provide returns to its shareholders and seek opportunities in growth segments.

Microsoft Corp. struck a deal to buy a 4% stake in London Stock Exchange Group PLC from the information software and news company and investment funds affiliated with Blackstone Inc. valued at GBP1.5 billion ($1.8 billion) in all.

Thomson Reuters said the transaction is expected to complete in the first quarter of next year, subject to antitrust and regulatory approvals.

Thomson Reuters and Blackstone acquired the London Stock Exchange shares as part of the sale of Refinitiv, Thomson Reuters' former Financial & Risk business, to the stock exchange operator. As part of the deal, which closed in early 2021, Thomson Reuters and Blackstone agreed to a lock-up of their London Stock Exchange shares through Jan. 29, 2023.

As part of the transaction with Microsoft, the stock exchange agreed to amend the terms of the lock-up provisions so that the number of its shares that Blackstone and Thomson Reuters will be able to sell, in aggregate, between Jan. 30, 2023, and Jan. 29, 2024, will be unchanged and the number of London Stock Exchange shares that the two companies can sell between Jan. 30, 2024, and Jan. 29, 2025, will be reduced by half of the number of shares sold to Microsoft, Thomson Reuters said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

December 12, 2022 07:15 ET (12:15 GMT)

Blackstone (NYSE:BX)
Historical Stock Chart
From Mar 2024 to Apr 2024