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Thomson Reuters finalizes proceeds use from financial, risk business stake sale

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Thomson Reuters finalizes proceeds use from financial, risk business stake sale

Thomson Reuters Corp. finalized the use of proceeds from the sale of its 55% interest in its financial and risk business.

As previously announced, the company will return $10 billion of the proceeds to shareholders. About $6.5 billion will be returned in connection with the settlement of its substantial issuer bid/tender offer on or around Oct. 9. The company recently purchased for cancellation about 138 million common shares at $47 each. After the tender offer is effective, approximately 563 million common shares will be issued and outstanding.

About $2.5 billion will be returned through a cash distribution of $4.45 per common share and a share consolidation or reverse stock split, pending shareholders' approval. Additionally, about $1 billion will be returned through share repurchases under the company's normal course issuer bid. Of this, $556 million common shares were repurchased in 2018 and the remaining $444 million common shares will be repurchased later this year and in 2019.

The company has also repaid about $4 billion of debt since the sale's closing. The company plans to maintain about $2 billion of cash on its balance sheet and use about $1 billion to cover deal-related expenses, including cash taxes, pension contributions, bond redemption costs, one-time costs and other fees and outflows related to the sale.