Thomson Reuters Plans USD 1bn Share Buyback

Strategic Insights -

Canada-based content and technology company Thomson Reuters has announced plans to repurchase up to USD 1 billion of its shares, marking a significant move to provide returns to its shareholders. The share buyback program, approved by the Toronto Stock Exchange, will allow the company to purchase up to 10 million common shares, representing approximately 2.22% of its issued and outstanding common shares. The repurchased shares will be cancelled, and the company will have the flexibility to adjust its capital strategy based on market conditions, share price, and other opportunities for growth.

Key Takeaways:

  • Thomson Reuters plans to repurchase up to USD 1 billion of its shares under a new normal course issuer bid.
  • The company has been approved to buy back up to 10 million common shares, representing approximately 2.22% of its issued and outstanding common shares.
  • The share buyback program will be conducted on various exchanges, including the TSX, NASDAQ, and other eligible markets, using various methods such as open market transactions or private agreements.
  • Any private agreement purchases made under an exemption order may be at a discount to the prevailing market price.
  • Daily repurchases on the TSX are limited to a maximum of 91,026 shares, representing 25% of the average daily trading volume.
  • The company may enter into pre-defined plans with its broker to allow for repurchases during internal trading blackout periods, subject to Rule 10b5-1 under the US Securities Exchange Act of 1934.
  • The share buyback program is part of Thomson Reuters' disciplined capital strategy, which balances growth, long-term financial leverage, credit ratings, and returns to shareholders.
  • The company may suspend or discontinue share repurchases at any time, in accordance with applicable laws.

Statistics:

  • Thomson Reuters plans to repurchase up to USD 1 billion of shares.
  • The company is authorized to buy back up to 10 million common shares, representing approximately 2.22% of its issued and outstanding common shares.
  • The average daily trading volume on the TSX for the six months ended July 31, 2025 was 364,105 shares.
  • Daily repurchases on the TSX are limited to a maximum of 91,026 shares, which represents 25% of the average daily trading volume.
  • The share buyback program will be conducted from August 19, 2025, to August 18, 2026.

Sources:

  • M2 EQUITYBITES-August 18, 2025-Thomson Reuters Plans USD 1bn Share Buyback (C)2025 M2 COMMUNICATIONS http://www.m2.co.uk