Thomson Reuters Realizes It Is Way Too Complicated; Unifies Dual Listed Stock

Thomson Reuters

A year after the Thomson Reuters (NSDQ: TRIN) merger, the data and news company has realized its dual-listing structure is way too complicated, and it is proposing unifying the two pieces. The company board has “unanimously determined that unifying the company’s capital structure is in the best interests of all shareholders,” it said in a release, as it will “consolidate and improve the trading of the company’s shares and simplify its capital structure.” If this unification is approved by shareholders at its annual meeting on Aug 7, Thomson Reuters will remain listed on the Toronto Stock Exchange and New York Stock Exchange and will no longer be listed on the London Stock Exchange and Nasdaq. The reason why it was so complicated to begin with was because Thomson was a Canadian company listed on Toronto stock exchange and NYSE, while Reuters was a London company also listed on Nasdaq.

“The shareholders of Thomson Reuters have changed considerably [in the last year], and U.K. shareholders now only constitute 5% of the combined shareholder base,” said Tom Glocer, CEO of TR. And to assuage fears that the company turning its back on its London roots, Glocer further says that “London is a vital global capital for the markets that we serve, and home to more than 5,000 of our employees.”

With this new structure, the company shareholders will have the same economic interest as before: Thomson Reuters PLC shareholders will receive one share in Thomson Reuters Corporation for every PLC share held. Holders of Thomson Reuters PLC American Depositary Shares (ADSs) will receive six Thomson Reuters Corporation common shares for each ADS held. In connection with unification, Thomson Reuters may repurchase the equivalent of up to $500 million of shares in one or more of its markets. More in the release here.

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