TORONTO (Reuters) - Thomson Reuters Corp (TRI.TO)(TRI.N) said on Tuesday that it will complete the sale of a 55 percent stake in its Financial & Risk unit to private equity firm Blackstone Group LP (BX.N) on Oct. 1.
The Thomson Reuters logo is seen on the company building in Times Square, New York, U.S., January 30, 2018. REUTERS/Andrew Kelly
The news and information provider had previously said it expected to complete the deal, which values the business at about $20 billion, in the fourth quarter of 2018.
The company reiterated its guidance that it will receive about $17 billion in gross proceeds when the deal closes, out of which it plans to return $10 billion to shareholders.
As part of that process, the company said up to $9 billion will be returned to shareholders through a tender offer for shares which commences on Tuesday.
From the remainder of the proceeds, the company said it will redeem $4 billion of debt, keep $2 billion of cash on its balance sheet and use $1 billion to cover expenses related to the transaction.
Shares in Thomson Reuters, which had been suspended prior to the announcement, were trading at C$58.15 at 11:17 a.m. ET in Toronto, having earlier hit C$58.50 after trading recommenced, their highest level since January.
Reporting by Matt Scuffham; Editing by Meredith Mazzilli
