Thomson Reuters (NYSE: TRI; TSX: TRI; LSE: TRIL; NASDAQ: TRIN) has announced that as part of its previously announced US$500 million share repurchase program, it has received approval from the Toronto Stock Exchange (TSX) to renew its Normal Course Issuer Bid (NCIB) for Thomson Reuters Corporation common shares for an additional 12-month period.
The renewal of the NCIB will provide Thomson Reuters with the flexibility to purchase shares of either Thomson Reuters Corporation or, as currently permitted, Thomson Reuters PLC. On April 18, 2008, Thomson Reuters began purchasing ordinary shares of Thomson Reuters PLC. From April 18, 2008 through May 30, 2008, approximately 9.6 million Thomson Reuters PLC ordinary shares were purchased for a total cost of approximately US$302 million.
Purchases of Thomson Reuters Corporation common shares may commence on June 6, 2008 and will terminate no later than June 5, 2009. Thomson Reuters Corporation common shares may be purchased in open market transactions on the TSX or the New York Stock Exchange. Under the bid, up to 15 million common shares of Thomson Reuters Corporation may be repurchased. This amount represents approximately 1.81% of the aggregate issued and outstanding shares of Thomson Reuters Corporation and Thomson Reuters PLC as of May 30, 2008.
Thomson Reuters may purchase up to 465,401 Thomson Reuters Corporation common shares during any trading day, which represents 25% of the average daily trading volume for the most recently completed six calendar months prior to TSX acceptance of the notice of the NCIB. This limitation does not apply to purchases made pursuant to block purchase exemptions. Between May 7, 2007 and May 6, 2008, 2,370,500 common shares were repurchased under the NCIB at an average price of C$38.75 per share.
Decisions regarding the timing of future repurchases of shares of Thomson Reuters Corporation or Thomson Reuters PLC will be based on market conditions, share price and other factors. Thomson Reuters may elect to suspend or discontinue share repurchases at any time. Shares that are repurchased will be cancelled.
From time to time, when Thomson Reuters does not possess material nonpublic information about itself or its securities, it may enter into a pre-defined plan with its brokers to allow for the repurchase of shares at times when Thomson Reuters ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with Thomson Reuters brokers will be adopted in accordance with the requirements of applicable Canadian and English securities laws and Rule 10b5-1 under the U.S. Securities Exchange Act of 1934.