Selling Refinitiv unlocks value: Thomson Reuters

Article Excerpt

THOMSON REUTERS CORP. $104 is a buy. The company (Toronto symbol TRI; Consumer sector; Shares o/s: 495.3 million; Market cap: $51.5 billion; Dividend yield: 1.9%; Takeover Target Rating: Lowest; www.thomsonreuters.com) sold 55% of its Financial & Risk business (now called Refinitiv) to a consortium led by Blackstone Group LP (New York symbol BX) in October 2018. Refinitiv sells specialized information products to financial clients such as banks and brokerages. The company and Blackstone have now completed their plan to sell Refinitiv to the London Stock Exchange Group plc (Over-the-counter Pink Sheets symbol LDNXF). As a result of the all-stock transaction, Thomson now owns 15% of the combined firm. That stake is currently worth about $11 billion U.S. Thomson and Blackstone have agreed to hold onto their shares for now; the lock-up agreement expires on January 29, 2025. The company could then sell its stake to expand its main businesses, focused on selling specialized information to professionals in the legal, and tax and accounting fields. Thomson Reuters is a..