Telus wants full control of its subsidiary Telus Digital and has made an official offer to buy up all the shares it doesn’t already own.
Right now, Telus owns about 57% of Telus Digital, which builds software and digital tools for Telus’ businesses like telecom, healthcare, and agriculture.
On June 12, Telus announced it has offered to buy the rest of the company’s shares for $3.40 USD per share. That price is about 15% higher than Telus Digital’s stock was trading at earlier this week, and 23% higher than its average over the past month.
If the deal goes through, Telus would fully own Telus Digital. Telus says this would help it roll out AI features and software tools more easily across its entire business.
“Our proposal to fully acquire TELUS Digital reflects our belief that closer operational proximity between TELUS and TELUS Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business, including telecommunications, TELUS Health and TELUS Agriculture & Consumer Goods, driving positive outcomes for the customers we serve,” said Telus CEO Darren Entwistle in the announcement on Thursday.
Telus has asked Telus Digital’s board to form a group of independent directors to review the offer. Right now, nothing is finalized — it’s just a proposal. The deal still needs to go through due diligence, legal agreements, and approval from shareholders and the courts.
Even if both sides agree, it could take time before anything is official. But Telus says it’s ready to move quickly and work with the Telus Digital board to make the deal happen.
According to Telus, it already owns most of the high-voting shares (92.5%) and a small portion of regular shares (6.1%), which gives it nearly 87% of total voting power. Still, the remaining shareholders would need to vote on the deal before it can move forward.
Telus Digital, which started as Telus International in 2005, grew by buying other companies to become a big player in helping businesses with digital customer service and tech solutions. It went public in 2021, changed its name to Telus Digital in 2024. Now Telus wants to buy it back in a deal that will be worth over $400 million US ($543 million CAD after the latest exchange rates).
Bank of Nova Scotia analyst Maher Yaghi said Telus’s move to buy out Telus Digital makes strategic sense, calling it “the logical thing to do.” He believes the company is committed to completing the deal but noted that Telus may need to improve its offer to secure approval. Still, Yaghi suggested that many Telus Digital shareholders might welcome the chance to cash out quickly.
The CRTC and other regulators are not involved at this stage. Telus says the buyout wouldn’t impact its overall debt levels.
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