Blackstone deal closes Oct. 1 and tender offer coming! Thomson Reuters, Blackstone to close Financial & Risk deal on Oct. 1
Thomson Reuters (TRI +3.8%) and private equity funds managed by Blackstone (BX) agree to complete the sale of a 55% stake in TRI's Financial & Risk business on Oct. 1, 2018.
The closing of the transaction is not subject to any financing condition. An affiliate of Canada Pension Plan Investment Board and an affiliate of GIC will invest alongside Blackstone.
After the closing, the Financial & Risk business will be known as Refinitiv.
Thomson Reuters plans to return to shareholders about $10B of $17B in gross proceeds. The company plans to use the rest f the proceeds to redeem about $4B of debt, keep about $2B of cash on its balance sheets to fund focused acquisitions, and use about $1B to cover transaction-related expenses.
Separately, the company's board authorizes a tender offer for up to $9B of its common shares at a price range of $42.00 to $47.00 per share; Woodbridge plans to participate in the tender offer on a basis proportionate with its 64% stake in TRI.
Previously: Blackstone gets EU approval for Thomson Reuters unit deal: Reuters (July 23)