Thomson Reuters (TSX/NYSE: TRI) has confirmed that Blackstone is in discussions related to a possible acquisition of Refinitiv Holdings Ltd. by the London Stock Exchange Group plc (LSE) for a total enterprise value of approximately US $27 billion, including the assumption of debt.
The Refinitiv business is currently 55% owned by Blackstone consortium and 45% by Thomson Reuters. Blackstone consortium includes Canada Pension Plan Investment Board, GIC Special Investments Pte. Ltd and certain co-investors.
LSE intends to issue new shares as consideration in full for Refinitiv’s equity value. If completed, Refinitiv Shareholders will hold 37% in the enlarged group and less than 30% of the total voting rights of LSE. Thomson Reuter will own approximately 15% stake.
In October 2018, Thomson Reuters sold 55% of its former Financial & Risk business to Blackstone consortium for approximately US $17 billion and retained a 45% interest in the new company, renamed as Refinitiv.
As part of the Blackston transaction, Reuters News and Refinitiv entered into a 30-year agreement pursuant to which Reuters News will supply news and editorial content to Refinitiv for a minimum of US $325 million per year. This agreement will continue even if ownership of Refinitiv changes.
As at December 31 2018, Refinitiv had total assets of US $23,482 million and net debt of US $12,225 million.
photo credit: Refinitiv
News Release
Thomson Reuters and Blackstone in Discussions with London Stock Exchange Group Regarding the Refinitiv Business
TORONTO, July 26, 2019 – Thomson Reuters (TSX/NYSE: TRI) confirms that it and private equity funds affiliated with Blackstone are in discussions related to a possible acquisition of Refinitiv by the London Stock Exchange Group plc (LSEG) for a total enterprise value of approximately US$27 billion.
New LSEG shares are contemplated to be issued as consideration in full for Refinitiv’s equity value, after adjusting for Refinitiv’s net debt and other adjustments.
The parties anticipate that the transaction would result in Thomson Reuters holding an approximate 15% stake in LSEG if completed.
The Refinitiv business is currently 55% owned by private equity funds managed by Blackstone and 45% by Thomson Reuters. Reuters News 30-year agreement signed last year with Refinitiv will continue if ownership of Refinitiv changes.
There can be no certainty that these discussions will progress or that a transaction will be forthcoming.
Any further announcements will be made as appropriate.
Thomson Reuters
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