Particle.news
Download on the App Store
4 ARTICLES
·
last mo.

Telus Proposes $947 Million Bid to Buy Out Telus Digital

The telecoms firm plans to pay cash, shares or a mix for its affiliate to integrate AI-driven services more tightly into its networks.

A sign for Telus Communications in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
Image
Telus CEO Darren Entwistle in Vancouver in October 2015. The Canadian Press/Darryl Dyck

Overview

  • Telus has made a non-binding $3.40 per share offer for the roughly 43% of Telus Digital it does not already own.
  • At this price the digital services unit is valued at around $946.8 million, representing a 15% premium to its last closing share price.
  • Since its 2021 IPO at $25 per share, Telus Digital’s stock has tumbled more than 90% following the loss of major clients and industrywide service challenges.
  • The proposed transaction would be financed through cash, new share issuance or a combination of both to limit the impact on Telus’s leverage ratio.
  • Telus CEO Darren Entwistle said fully integrating the spinout will accelerate AI and software-as-a-service capabilities across the company’s operations.