Reuters Announces $1 Billion Buyback Program
- The announcement comes a month after the media giant announced a similar $500 million buyback program
Media giant Thomson Reuters (Reuters) announced plans to buy back $1 billion worth of shares this Friday. The announcement follows on the heels of a statement issued by the company last month that declared it would be buying back $500 million shares.
The $1 billion buyback program announced today would be separate from the one announced last month, meaning the firm plans to repurchase a total of $1.5 billion worth of shares. Since last month’s announcement, the firm has already repurchased $231 million worth of shares.
The buyback program is a result of Reuters selling its Financial & Risk business to private equity firm Blackstone Group. The deal took place in January of this year and saw Blackstone paying $20 billion for a 55 percent stake in the business.
As a result of this deal, Reuters has considered engaging in a $9-10 billion substantial issuer bid/tender offer (SIB). This offer would be available to all of Reuters’ shareholders.
Shares at a premium
The firm’s main shareholder, the private holding company Woodbridge, would be taking part in the SIB on a pro rata basis. Significantly, Reuters noted that, under the buyback program, there is a chance shares will be repurchased at a premium to the then-current market price of its shares.
Perhaps as a result of this, the company wants to reduce the size of the planned SIB. Shares repurchased via the buyback program would be bought by Reuters at market rate and not at a premium.
The repurchasing of shares under the buyback program will take place on either the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term or the Toronto Stock Exchange. As Reuters is headquartered in Canada, the program will have to take place under the auspices of Normal-Course Issuer Bid (NCIB) Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
Media giant Thomson Reuters (Reuters) announced plans to buy back $1 billion worth of shares this Friday. The announcement follows on the heels of a statement issued by the company last month that declared it would be buying back $500 million shares.
The $1 billion buyback program announced today would be separate from the one announced last month, meaning the firm plans to repurchase a total of $1.5 billion worth of shares. Since last month’s announcement, the firm has already repurchased $231 million worth of shares.
The buyback program is a result of Reuters selling its Financial & Risk business to private equity firm Blackstone Group. The deal took place in January of this year and saw Blackstone paying $20 billion for a 55 percent stake in the business.
As a result of this deal, Reuters has considered engaging in a $9-10 billion substantial issuer bid/tender offer (SIB). This offer would be available to all of Reuters’ shareholders.
Shares at a premium
The firm’s main shareholder, the private holding company Woodbridge, would be taking part in the SIB on a pro rata basis. Significantly, Reuters noted that, under the buyback program, there is a chance shares will be repurchased at a premium to the then-current market price of its shares.
Perhaps as a result of this, the company wants to reduce the size of the planned SIB. Shares repurchased via the buyback program would be bought by Reuters at market rate and not at a premium.
The repurchasing of shares under the buyback program will take place on either the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term or the Toronto Stock Exchange. As Reuters is headquartered in Canada, the program will have to take place under the auspices of Normal-Course Issuer Bid (NCIB) Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.