Thomson Reuters (NYSE:TRI) has announced it will return approximately US$2.2 billion from gross proceeds of about US$2.3 billion to shareholders after it sold some of its shares in the London Stock Exchange Group (LSEG).
The parent company of Reuters News said the money will be returned to shareholders through a cash distribution of US$4.67 per common share and a share consolidation, or reverse stock split, which will reduce the number of outstanding common shares on a basis that is proportional to the cash distribution.
While the proposed transaction is intended to distribute cash on a basis that is generally expected to be tax-free for Canadian tax purposes, it said taxable non-Canadian resident shareholders - including taxable US resident shareholders and others - will be able to opt out.
The company said the distribution and reverse stock split needs the approval of two-thirds of votes cast by shareholders at the company’s annual and special meeting on June 14.
It also requires the approval of the Ontario Superior Court of Justice (Commercial List). If shareholder and court approvals are obtained, Thomson Reuters (NYSE:TRI) said expects to effect the proposed transaction by the end of June.
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