Telus Proposes Acquisition of Telus International Shares at 15% Premium

Telus proposes to acquire all remaining shares of Telus International for $3.40 per share, a 15% premium over the closing stock price on June 11. The acquisition requires the approval of Telus International's board and necessary shareholder consents. Telus reported strong Q1 results, including 218,000 net customer additions, 4% growth in TTech EBITDA, and a 22% increase in free cash flow.

Canadian telecommunications giant Telus has submitted a non-binding proposal to acquire all remaining shares of Telus International (TIXT) at $3.40 per share, representing a 15% premium over the stock's closing price on June 11. The acquisition aims to enhance Telus' AI capabilities and software-as-a-service (SaaS) transformation across its various business segments [1].

The proposed offer, which can be paid in cash, Telus shares, or a combination of both, is contingent on several factors, including thorough due diligence, agreement on the transaction structure, and necessary shareholder approvals [2]. Telus International's board of directors has been urged to form a special committee of independent directors to review the proposal [3].

In Q1 2025, Telus reported strong financial results, including 218,000 net customer additions, a 4% growth in TTech EBITDA, and a 22% increase in free cash flow [4]. The acquisition of Telus International is expected to enhance Telus' operational efficiency and growth strategy by leveraging the digital arm's expertise in customer experience management and digital solutions [2].

The proposed acquisition is part of Telus' broader strategy to invest more than C$70bn ($51bn) in Canada by 2029, focusing on network infrastructure enhancements, AI data centers, and eco-friendly technologies [1]. Telus currently owns 57.4% of Telus International's shares, including 152,019 multiple voting shares and 6,874 subordinate voting shares, holding 86.9% of the voting power [3].

The proposed acquisition remains non-binding and requires the approval of Telus International's board and shareholders. The transaction, if approved, would result in Telus Digital becoming a key business unit under the broader Telus umbrella, joining other segments such as telecommunications, Telus Health, and Telus Agriculture & Consumer Goods [3].

References:
[1] https://finance.yahoo.com/news/telus-proposes-full-acquisition-telus-092655234.html
[2] https://www.gurufocus.com/news/2923572/telus-tixt-considers-acquisition-of-telus-international-shares-tixt-stock-news
[3] https://www.marketscreener.com/quote/stock/TELUS-INTERNATIONAL-CDA-I-118501094/news/Telus-Proposes-Re-Merging-With-Telus-Digital-50224754/
[4] https://www.marketscreener.com/quote/stock/TELUS-CORPORATION-14408639/news/TELUS-Submits-Non-Binding-Indication-of-Interest-to-Acquire-Full-Ownership-of-TELUS-Digital-50224095/