Topic: How To Invest

The Successful Investor Hotline – Friday, October 12, 2018

Article Excerpt

THOMSON REUTERS CORP., $59.71, Toronto symbol TRI, sells specialized information products to financial clients such as banks and brokerages. It also sells specialized information to professionals in the legal, and tax and accounting fields. The company owns the Reuters news service. On October 1, 2018, Thomson sold 55% of its Financial & Risk (F&R) business to a consortium led by Blackstone Group LP (New York symbol BX). In exchange, Thomson received $17 billion—$3 billion in cash and $14 billion in notes and preferred shares (all amounts except share price in U.S. dollars). The company is using $6.5 billion of the proceeds to buy back 138.0 million shares at $47.00 U.S. a share. Together, those shares represent 19.7% of the total number outstanding. Thomson also plans to pay shareholders a return-of-capital distribution of $4.45 U.S. a share. That payment will total $2.5 billion U.S. Canadian investors will not have to pay taxes on the distribution. For non-Canadian investors subject to tax, Thomson will let them…

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