TORONTO - Thomson Reuters (TSX:TRI) (TSX/NYSE: NYSE:TRI) and investment funds affiliated with Blackstone (NYSE:BX) have sold their collective stake in London Stock Exchange Group PLC (LON:LSEG), marking Thomson Reuters' exit from the exchange group. The transaction involved the sale of 17.3 million shares at £91.50 each to a mix of institutional and retail investors.
The shares sold include approximately 4.3 million indirectly owned by Thomson Reuters. With the completion of this sale, Thomson Reuters anticipates a pre-tax net revenue of roughly $0.5 billion. This move signifies the end of the company's financial interest in LSEG.
Thomson Reuters is known for providing critical data, intelligence, and technology solutions to professionals across various sectors, including legal, tax, accounting, compliance, government, and media. It is also the parent company of Reuters, a global leader in news and journalism.
The sale was executed through a placement process, which is a common method for companies to divest large numbers of shares to investors. This method is typically faster and involves fewer regulatory requirements than a public offering.
The divestiture of the LSEG stake is a significant financial event for Thomson Reuters, as it represents the disposal of a substantial asset. The company has not disclosed specific plans for the use of the proceeds from the sale.
This information is based on a press release statement from Thomson Reuters.
InvestingPro Insights
As Thomson Reuters (NYSE:TRI) concludes its divestiture from London Stock Exchange Group, the company's financial metrics and strategic moves are in the spotlight for investors and market analysts. According to InvestingPro data, Thomson Reuters has a market capitalization of $75.67 billion and is trading at a P/E ratio of 32.06, which indicates a premium valuation relative to immediate earnings. However, the company's PEG ratio, which stands at 0.26 for the last twelve months as of Q1 2024, suggests that investors may be expecting significant earnings growth in relation to the P/E ratio.
The company's recent financial performance shows a steady revenue growth of 3.74% over the last twelve months as of Q1 2024, with a gross profit margin of 40.93%, reflecting strong operational efficiency. Additionally, Thomson Reuters has demonstrated a commitment to shareholder returns, boasting a dividend yield of 1.29% and a dividend growth rate of 6.23% over the same period.
InvestingPro Tips highlight that Thomson Reuters has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial stability and profitability. Moreover, the management's strategy of aggressively buying back shares could be a signal of confidence in the company's valuation and future prospects. Notably, Thomson Reuters has raised its dividend for 4 consecutive years, emphasizing its reliability as an income-generating investment.
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