The Ontario Superior Court of Justice issued a final order on April 30 2026 approving Thomson Reuters’ plan of arrangement to return $605 million in capital to shareholders and to consolidate its common shares. The order confirms the plan that shareholders approved on April 28 2026 and allows the company to move forward with the capital return and reverse stock split.
Under the plan, shareholders will receive approximately $1.36 in cash per share, and the company will execute a pro‑rata reverse stock split that reduces the number of outstanding shares while preserving the overall market value. The reverse split is scheduled to take effect on May 4 2026, with post‑consolidation shares beginning to trade on the same day. The plan is still pending final approval from the Toronto Stock Exchange and Nasdaq.
The capital return is funded by the gross proceeds from Thomson Reuters’ May 2024 sale of London Stock Exchange Group shares. The move is part of the company’s broader capital allocation strategy, which also includes a $600 million share repurchase program and continued investment in AI‑powered products and workflow tools. By returning surplus cash, the company balances shareholder rewards with funding for future growth initiatives.
For Canadian shareholders, the return of capital is generally tax‑free, while non‑Canadian residents may prefer to opt out of the cash distribution to avoid different tax consequences. Shareholders who opt out will still participate in the share consolidation, resulting in a proportionate increase in their equity and voting interests.
Thomson Reuters’ recent financial performance provides context for the capital return. In Q1 2025 the company posted a profit of US$434 million, down from US$478 million a year earlier, with revenues edging higher. Q4 2025 earnings of $1.07 per share beat expectations of $1.06, and analysts project Q1 2026 earnings of $1.19 per share on revenue of $2.0085 billion. The company’s net profit margin fell to 19.8% for the year ended December 31 2025, down from 30.2% the previous year, while the dividend was increased to $0.655 per quarter, an annualized yield of 2.9%.
Steve Hasker, President and CEO, emphasized that Thomson Reuters remains committed to a balanced capital allocation approach. He noted that the company continues to invest heavily in innovation, particularly in AI, while delivering sustained value to shareholders through capital returns and dividends.
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