Thomson Reuters Corp. (TRI) is seeking shareholder approval to
unify its dual-listed company structure, a move that would simplify
trading as U.K. investors make up a shrinking portion of the
financial data company's shareholder base.
In connection with the unification, Thomson Reuters said it may
repurchase the equivalent of up to $500 million of its shares in
one or more of its markets.
If the plan is approved at a shareholder meeting scheduled for
Aug. 7, Thomson Reuters would remained listed on the Toronto Stock
Exchange and the New York Stock Exchange, but wouldn't be listed on
the London Stock Exchange or Nasdaq.
The company, which was formed via a merger of Thomson Corp. and
Reuters Group, said Thomson Reuters PLC (TRIN) shareholders would
have "the same economic interest" in Thomson Reuters as they do
under the current dual-listed company structure. Thomson Reuters
PLC shareholders would receive one share in Thomson Reuters Corp.
for every PLC share held. Holders of Thomson Reuters Corp. common
stock, meanwhile, would continue to hold their existing shares.
"When we formed Thomson Reuters, we believed a DLC structure was
the best way for Reuters shareholders to stay invested in our
shares and participate in our growth," said Thomson Reuters Chief
Executive Thomas Glocer. "However, the shareholders of Thomson
Reuters have changed considerably, and U.K. shareholders now only
constitute 5% of the combined shareholder base."
The company said the proposed unification wouldn't affect its
businesses, operations, strategy or financial position. The company
also affirmed its full-year revenue target.
If shareholders and court approvals were obtained, the company
said it expects the unification to occur by the end of the third
quarter.
Thomson Reuters Corp.'s shares were up 0.3% at $29.19 in
after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com