January 30, 2018 / 10:48 PM / 8 months ago

BRIEF-Thomson Reuters, Blackstone Announce Strategic Partnership For Thomson Reuters F&R Business

Jan 30 (Reuters) - Thomson Reuters Corp:

* THOMSON REUTERS AND BLACKSTONE ANNOUNCE STRATEGIC PARTNERSHIP FOR THOMSON REUTERS FINANCIAL & RISK (F&R) BUSINESS

* ‍BLACKSTONE TO ACQUIRE 55% INTEREST IN F&R WITH THOMSON REUTERS TO RETAIN 45% STAKE​

* DEAL ‍VALUES F&R BUSINESS AT ABOUT $20 BILLION; THOMSON REUTERS TO RECEIVE ABOUT $17 BILLION IN GROSS PROCEEDS​

* F&R TO ENTER INTO 30-YEAR AGREEMENT TO SECURE ACCESS TO NEWS SERVICES PROVIDED BY REUTERS FOR A MINIMUM OF $325 MILLION ANNUALLY

* ‍REUTERS NEWS REMAINS PART OF THOMSON REUTERS​

* PLANS TO USE NET PROCEEDS FROM DEAL TO INVEST IN ITS CORE LEGAL AND TAX & ACCOUNTING UNITS, PAY DOWN DEBT AND REPURCHASE SHARES

* ‍FULL-YEAR 2017 RESULTS EXPECTED TO MEET OR EXCEED GUIDANCE​

* ‍FULL-YEAR ADJUSTED EBITDA MARGIN EXPECTED TO BE BETWEEN 30.1% AND 30.4%​

* ‍FULL-YEAR ADJUSTED EPS EXPECTED TO BE BETWEEN $2.48 AND $2.51 VERSUS $1.79 FOR PRIOR YEAR - ON A NON-IFRS BASIS​

* THOMSON REUTERS SAYS ON IFRS BASIS, FULL-YEAR REVENUE EXPECTED TO RISE 1%; OPERATING PROFIT TO RISE ABOUT 25%; DILUTED EPS EXPECTED TO FALL ABOUT 50%

* SAYS ANNUAL DIVIDEND MAINTAINED AT $1.38

* THOMSON REUTERS - ‍DEAL TO BE FUNDED BY $14 BILLION OF DEBT & PREFERRED EQUITY TO BE INCURRED BY PARTNERSHIP AND A $3 BILLION CASH EQUITY CONTRIBUTION BY BLACKSTONE​

* ‍THOMSON REUTERS WILL MAINTAIN FULL OWNERSHIP OF ITS LEGAL, TAX & ACCOUNTING AND REUTERS NEWS BUSINESSES​

* ‍CANADA PENSION PLAN INVESTMENT BOARD (CPPIB) AND GIC WILL INVEST ALONGSIDE BLACKSTONE FOR TRANSACTION​

* SAYS “REUTERS NEWS WILL MAINTAIN COMPLETE EDITORIAL FREEDOM, AND CONTINUE TO OPERATE UNDER THE TRUST PRINCIPLES”

* ‍NEW PARTNERSHIP TO BE MANAGED BY 10 PERSON BOARD COMPOSED OF 5 REPRESENTATIVES FROM BLACKSTONE AND 4 FROM CO

* ‍PRESIDENT AND CEO OF NEW PARTNERSHIP WILL SERVE AS A NON-VOTING MEMBER OF BOARD FOLLOWING CLOSING OF DEAL

* ‍”SALE OF A MAJORITY STAKE IN F&R TO BLACKSTONE IS NOT SUBJECT TO ANY FINANCING CONDITION”​

* ‍BLACKSTONE HAS OBTAINED DEBT AND EQUITY COMMITMENTS FOR TRANSACTION​

* EXPECTS TO REPORT FULL-YEAR 2017 REVENUES BETWEEN $11.3 BILLION AND $11.35 BILLION‍​ ON IFRS BASIS

* THOMSON REUTERS - FY 2017 IFRS BASIS DILUTED EPS PROJECTED TO BE DOWN ABOUT 50%, PRIMARILY DUE TO $2 BILLION GAIN REALIZED IN 2016 ON SALE OF IP & SCIENCE BUSINESS‍​

* FY2017 EARNINGS PER SHARE VIEW $2.47, REVENUE VIEW $11.34 BILLION — THOMSON REUTERS I/B/E/S Source text for Eikon: Further company coverage:

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