Reuters has announced plans to offer 40 million shares of the Tibco common stock it holds in a public offering.
Reuters also intends to grant the offering syndicate a 30-day option to purchase 6 million additional shares to cover over-allotments, if any. The offering is being made under a shelf registration statement covering an aggregate of 60 million shares, giving Reuters the opportunity to offload more stock if demand dictates.
Reuters currently holds approximately 103 million shares, or around 49% of Tibco's issued and outstanding common stock. The flotation is expected to value the California-based software company at between $500 and $1 billion.
Tibco has agreed to repurchase $115 million of its common stock directly from Reuters at the same price per share as the offering.
The offering is being made through a syndicate led by Goldman, Sachs & Co., as the sole book-runner and lead manager.