Reuters Information to Get $325M Yearly Below Blackstone Supply

Ann Santiago
January 31, 2018

Under the acquisition, Blackstone acquire a 55 per cent stake in a newly hived off F&R business, the statement said.

The new partnership will be managed by a 10 person board composed of five representatives from Blackstone and four from Thomson Reuters. The Canada Pension Plan Investment Board declined to comment. A deal would give Thomson Reuters a world-leading private-equity firm as a partner to bring in more capital, potentially for consolidation, DeGroote said. That $17 billion would include about $4 billion in cash from Blackstone and about $13 billion financed by new debt taken on by the new F&R partnership, the sources said. Reuters News will continue to have complete editorial independence from F&R and Thomson Reuters, as it does today.

The company also said it would retain full ownership of its legal, tax and accounting and Reuters News businesses.

The trustees approved Thomson's deal for Reuters a decade ago.

Thomson Reuters, which is worth about $31 billion, is a Canadian news and financial information company that was formed by the merger of Thomson Corporation and Reuters Group, its British rival, in 2008.

Blackstone has some experience in the information business.

"As a long-term value investor, we believe this business transformation will enable F&R to focus on its core customer base and be in a strong position to continue delivering innovative products to the market", said Choo Yong Cheen, chief investment officer of private equity at GIC.

The company has also sought to sell non-core assets, including its intellectual property and science business, which it sold to private equity firms Onex Corp and Baring Private Equity Asia for $3.55 billion in 2016.

The Thomson family controls around 63% of the stock through its Woodbridge Co vehicle.

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