Thomson Reuters announced plans to repurchase up to US$600 million of its common shares through an amended normal course issuer bid (NCIB) approved by the Toronto Stock Exchange (TSX). This updated NCIB will come into effect on February 27, 2026, allowing the company to increase the total share repurchase from the previous cap of 10 million shares to a maximum of 16 million. As of now, Thomson Reuters has already repurchased 6,022,437 shares at a cost of around US$1 billion.
In addition to the share repurchase initiative, Thomson Reuters intends to return US$605 million to shareholders through a return of capital transaction, scheduled to be completed by May 2026. Shareholders may receive approximately US$1.36 per participating share, followed by a share consolidation—essentially a reverse stock split—based on the share’s trading price leading up to the transaction. The return of capital is anticipated to be tax-free for Canadian shareholders, although taxable non-Canadian residents will have the option to opt out due to varying tax implications abroad.
A special meeting for shareholder approval is set for April 28, 2026, with the board unanimously recommending a favorable vote. Approval from the Ontario Superior Court of Justice is also required for the transaction to proceed.
Detailed information about the return of capital and share consolidation will be made available to shareholders in the management proxy circular and related documents expected to be distributed in mid-March.
Bold Points:
- Why this story matters: This initiative reflects Thomson Reuters’ strategy to return value to shareholders while managing its capital efficiently.
- Key takeaway: The share buyback and return of capital are designed to enhance shareholder value and improve the company’s stock performance.
- Opposing viewpoint: Some analysts may argue that the use of capital for share repurchase could limit funds available for growth and investment opportunities.
