Telus to Acquire Remaining Telus Digital Shares for 52% Premium

Telus, a prominent telecommunications company, has announced its plan to acquire the remaining shares of its digital services subsidiary, Telus Digital, through a cash and stock deal valued at 539 million dollars. This strategic move is aimed at enhancing the company's artificial intelligence capabilities and further integrating the subsidiary's IT services.

The acquisition involves Telus offering 4.50 dollars per share for the outstanding shares of Telus Digital, effectively privatizing the subsidiary. The total valuation of this transaction is estimated to be around 2.9 billion dollars. By gaining full control over the digital subsidiary, Telus aims to better leverage its AI and software technology capabilities.

Telus Digital shareholders have the option to receive the consideration in one of three ways: full cash payment at 4.50 dollars per share, full stock payment at 0.273 shares of Telus stock per share, or a combination of 50% cash and 50% stock. The total amount payable in stock is capped at 25% of the total consideration, with any excess to be paid in cash.

The acquisition price represents a 52% premium over Telus Digital's closing price on June 11, which was 2.96 dollars per share, and a 32% increase from the initial offer of 3.40 dollars per share made on the same date. Currently, Telus holds approximately 86.9% of the voting rights in Telus Digital.

Both parties have disclosed that the independent special committee of Telus Digital has unanimously recommended the new transaction proposal, and its board of directors has approved the deal. The transaction is expected to be completed in the fourth quarter of this year.