Thomson Reuters quits London stock exchange: Information giant's move to simplify reflects its main shareholder base.
Thomson Reuters is to withdraw from the London shares listing in a bid to simplify its capital structure.
The information giant is also set to withdraw its listing from the US Nasdaq index, remaining listed only on the NYSE and the Toronto Stock Exchange.
Announcing a plan to end its dual structure, its board of directors said unifying the company's structure was in the best interest of all shareholders as it will consolidate the trading of its shares. But the decision is subject to shareholder approval scheduled for 7 August, as well as needing the go-ahead from the court.
The British roots of information provider Reuters date back to 1851 when Paul Julius Reuter started it as a carrier pigeon and telegraph service to send news to Berlin. In 1865, Reuter's private firm was restructured, and it became a limited company called the Reuter's Telegram Company. In 2007, Canada-based Thomson Corporation and Reuters agreed terms of a merger to create the world's largest provider of financial news and information. The company has been listed on four exchanges since April 2008.
Thomson Reuters chief executive Thomas H Glocer said: "When we formed Thomson Reuters, we believed a dual structure was the best way for Reuters shareholders to stay invested and participate in our growth.
"However, the shareholders of Thomson Reuters have changed considerably, and UK shareholders now only constitute 5% of the combined shareholder base." He added that the company's commitment to its customers, employees and other stake-holders in the UK and Europe remained unchanged by where it lists its shares.
London is home to more than 5,000 of Thomson Reuters' employees. But the company insisted that the proposed unification will have no impact on its operations, strategy, financial position or employees.