Company makes the offer to reacquire all shares of its 2021 spinoff
Shares of Telus International surged on Thursday following a US$940 million buyout proposal from Telus Corp., which seeks to reacquire full ownership of the digital services company it spun off in 2021.
Under the non-binding proposal, Telus is offering $3.40 per share to acquire the remaining shares it does not already own. The payment would be made in cash, Telus common shares, or a combination of both, according to the company.
Telus currently holds 57.4% of Telus International’s outstanding shares. This includes 92.5% of the company’s multiple voting shares and 6.1% of its subordinate voting shares. Based on this ownership, the transaction would be valued at approximately $400 million for the remaining stake.
Telus International shares rose $0.71 to close at US$3.67 on the New York Stock Exchange on Thursday, up from $2.96 the previous day. On the Toronto Stock Exchange, shares gained C$0.95 to close at C$5.00.
The company, also known as Telus Digital, provides IT services and customer support to clients globally. It launched its initial public offering in 2021 at $25 per share.
In a statement, Telus president and CEO Darren Entwistle said the proposed acquisition would provide benefits to Telus Digital, Telus customers, and shareholders.
The offer remains subject to negotiation, regulatory approval, and the completion of a definitive agreement. No timeline has been provided for the conclusion of the process.
Telus International has operated as a publicly traded company for just over three years, but its operations remain closely tied to its parent company. The proposal would bring the unit back under Telus’s full ownership if completed.
