Thomson Reuters Updates On Planned Sale Of Interest In Financial & Risk Unit

(RTTNews) - Thomson Reuters (TRI, TRI.TO) announced that its planned sale of a 55% interest in its Financial & Risk (F&R) business to private equity funds managed by Blackstone is expected to close early in the fourth quarter of 2018. Thomson Reuters previously signed a definitive agreement to sell a 55% majority stake in the Financial & Risk business and enter into a strategic partnership with private equity funds managed by Blackstone. The company will receive approximately $17 billion in gross proceeds at closing and will retain a 45% interest in the business.

Thomson Reuters currently expects to use between $9 billion and $10 billion of the estimated $17 billion of gross proceeds of the Financial & Risk transaction to return capital to its shareholders. A significant portion of this return is expected to be through a substantial issuer bid/tender offer made to all shareholders. The company expects to use between $3.0 billion and $4.0 billion of proceeds from the proposed Financial & Risk transaction to repay debt.

Jim Smith, CEO of Thomson Reuters, said: "Following the close of our partnership with Blackstone, Thomson Reuters will be well positioned to strengthen and grow our business. We have leading positions and must-have tools in our core markets. I believe we have a bright future doing what we do best: combining information, technology and human expertise to provide trusted answers."

For the second-quarter, adjusted EPS, which excludes discontinued operations, was $0.17 and decreased $0.02 per share, or 11%, due to lower adjusted EBITDA. Adjusted EBITDA decreased 8% year-over-year. Revenues increased 2% to $1.31 billion due to higher recurring revenues.

Thomson Reuters also reaffirmed its outlook for 2018 as previously provided on May 11, 2018.