LSE in discussion to acquire Refinitiv in all-stock transaction

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

Thomson Reuters is a leading provider of business information services. Our products include highly specialized information-enabled software and tools for legal, tax, accounting and compliance professionals combined with the world’s most global news service – Reuters. For more information on Thomson Reuters, visit tr.com and for the latest world news, reuters.com.

CONTACTS

MEDIA
David Crundwell
Senior Vice President, Corporate Affairs
+44 7909 898 605
david.crundwell@tr.com

INVESTORS
Frank J. Golden
Senior Vice President, Investor Relations
+1 646 223 5288
frank.golden@tr.com

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.