Telus Digital to Review Proposal to Rejoin Telus -- Update

Published: 2025-06-12 09:44:14 ET TIXT.TO

Published on 06/12/2025 at 09:44

By Adriano Marchese

Telus International, now known as Telus Digital, will form a committee to consider the proposal to re-merge into the telecom company Telus, from which it spun out four years ago.

Earlier on Thursday, Telus 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 Vancouver, British Columbia telecom major submitted a non-binding indication of interest to the board of directors of Telus International, also based in Vancouver, to acquire the remaining stock at $3.40 a share.

Later on Thursday, Telus Digital's board said it intends to form a special committee made up of independent directors to review, evaluate and consider the proposal.

Telus Digital cautioned that no decision has yet been made, and that there is no certainty that the deal will go through.

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 on the New York Stock Exchange. The proposed price represents a premium of about 15% to that closing level.

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 information-technology services separately from Telus' core telecommunications business.

Telus currently beneficially owns the majority of Telus Digital's shares. It holds 92.5% of the outstanding multiple voting shares and 6.1% of the outstanding subordinate voting shares, overall representing 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, health and agriculture and consumer goods segments.

Write to Adriano Marchese at [email protected]

(END) Dow Jones Newswires

06-12-25 0943ET