Telus Proposes Re-Merging With Telus Digital
TIXT.TO
Published on 06/12/2025 at 07:32
By Adriano Marchese
Telus has proposed to buy up all the shares it doesn't currently own of Telus Digital to more closely integrate artificial intelligence capabilities and software-as-a-service transformation.
The Canadian telecom major on Thursday said it has submitted a non-binding indication of interest to the board of directors of Telus International, now known as Telus Digital, to acquire the remaining stock at $3.40 a share.
Shares of Telus Digital have been under pressure in 2025, falling by over 24% since the year began to close on Wednesday at $2.96.
The proposed price represents a premium of about 15% to Telus Digital's Wednesday's closing price on the New York Stock Exchange.
In 2021, Telus Digital was spun out through an initial public offering, with Telus retaining a large majority of the shares. The idea was for Telus Digital, then Telus International, to provide customer experience and digital IT services separately from Telus' core telecommunications business.
Telus currently beneficially owns the large majority of Telus Digital's shares representing 92.5% of the outstanding multiple voting shares, 6.1% of the outstanding subordinate voting shares. This represents 57.4% of all outstanding shares, and 86.9% of the combined voting power of all outstanding shares.
Telus Chief Executive Darren Entwistle said merging the two companies again would offer "closer operational proximity between Telus and Telus Digital [that] will enable enhanced AI capabilities and SaaS transformation across all lines of our business."
Under the proposed plan, Telus Digital would be its own business unit under the broader Telus umbrella, joining other segments such as Telus' telecommunications, Telus Health and Telus Agriculture & Consumer Goods.
Write to Adriano Marchese at [email protected]
(END) Dow Jones Newswires
06-12-25 0731ET