TELUS Makes Offer to Acquire TELUS International at 15% Premium

TELUS aims to acquire full ownership of TELUS International with a $3.40 per share offer, a 15% premium over the recent closing price. The acquisition will strengthen TELUS's market position, streamline operations, and drive innovation and growth. TELUS already controls 57.4% of TELUS International's outstanding shares. Investors will be keen to observe how this acquisition will boost TELUS's market presence and value proposition.

TELUS Corporation (TELUS) has submitted a non-binding indication of interest (IOI) to acquire full ownership of TELUS Digital, a move aimed at enhancing AI and SaaS transformation across various sectors. The proposed acquisition involves TELUS acquiring all of the issued and outstanding subordinate voting shares and multiple voting shares of TELUS Digital for US$3.40 per share, representing a 15% premium over its recent closing price and a 23% premium over its 30-day volume-weighted average trading price [1].

The acquisition, if approved, will strengthen TELUS's market position by integrating TELUS Digital's operations more closely. TELUS Digital will continue to serve as a key enabler for TELUS' growth strategy and operational efficiency. The acquisition will be beneficial for customers and investors, as it is expected to drive innovation and growth across telecommunications, health, agriculture, and consumer goods sectors [1].

TELUS currently owns 57.4% of TELUS Digital's outstanding shares. The proposed acquisition will increase TELUS's ownership to 100%, allowing for deeper integration and potential synergies. The IOI is subject to various conditions, including confirmatory due diligence, agreement on transaction structure, and approval by TELUS Digital's board of directors and shareholders. Additionally, the transaction is subject to customary closing conditions, such as shareholder approvals under applicable securities laws [1].

Barclays is acting as the exclusive financial advisor to TELUS, while Stikeman Elliott LLP and A&O Shearman are serving as legal advisors. TELUS and its advisors are ready to work with TELUS Digital's board of directors to agree on the terms and implement the proposed acquisition [1].

Investors will be closely watching this development to understand how it will boost TELUS's market presence and value proposition. The acquisition is expected to enhance TELUS's ability to leverage TELUS Digital's leadership in customer service excellence, digital transformation, and community engagement [1].

References:
[1] https://www.telus.com/about/news-and-events/media-releases/telus-submits-non-binding-indication-of-interest-to-acquire-full-ownership-of-telus-digital