Latest news with #DarrenEntwistle
Yahoo
13-06-2025
- Business
- Yahoo
Telus proposes full acquisition of Telus Digital
Canadian telecom company Telus has proposed buying all remaining shares of its listed digital services subsidiary, Telus Digital for $3.40 per share. The price represents a 15% premium over Digital's 11 June 2025, closing price on the New York Stock Exchange and a 23% premium over its 30-day volume-weighted average price on Canadian and US markets. The digital arm operates across various industries, including technology, communications, Fintech, travel, retail, healthcare, and automotive. The move is part of the company's strategy to tighten its grip on the unit's AI capabilities. Telus president and CEO Darren Entwistle said: '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.' Telus already owns 57.4% of the digital arm's shares, including 152,004,019 multiple voting shares and 6,874,822 subordinate voting shares, holding 86.9% of voting power, per Digital's Q1 2025 financials. The non-binding offer, which could be paid in cash, Telus shares, or a mix of both, hinges on due diligence, a mutually agreed transaction structure, and definitive agreements. It also needs approval from Telus Digital's board, and has therefore urged Digital's board to form a special committee of independent directors to review the proposal. At this stage, no formal agreement has been established, and there is no guarantee that a transaction will occur, according to the company. Entwistle added: 'We anticipate that our deep familiarity with Telus Digital will enable us to conclude this proposed transaction, with appropriate engagement from Telus Digital, quickly and efficiently and, post-closing, effectively integrate the business and the team. 'Telus Digital will continue to be an important business unit within Telus, underscored by its demonstrated leadership in customer service excellence, digital transformation and heartfelt caring in the communities where team members live, work and serve.' Barclays is acting as the exclusive financial advisor to Telus, while Stikeman Elliott and A&O Shearman are providing legal counsel. In May 2025, Telus announced plans to invest more than C$70bn ($51bn) in Canada by 2029 to enhance its network infrastructure. The investment will focus on launching two new AI data centres, expanding wireless coverage in rural areas, and reducing greenhouse gas emissions through eco-friendly technologies. "Telus proposes full acquisition of Telus Digital" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Telus fails to deliver on Entwistle's IPO-based growth strategy
Would anyone buy another initial public offering promoted by long-serving Telus Corp. T-T chief executive officer Darren Entwistle? If the answer to that question is no, Mr. Entwistle's growth strategy at Telus is dead in the water. And it's hard to imagine investors stepping up for future Telus spinoffs after Tuesday's announcement that the parent company wants to put troubled offspring Telus International (Cda) Inc. TIXT-T out of its public market misery. Telus is offering to buy out shareholders in its subsidiary at a steep 86-per-cent discount to the price of its IPO, done with considerable fanfare just four years ago. Mr. Entwistle, a dominating personality who has been at the helm for 25 years, built Telus beyond its legacy phone networks by investing billions in subsidiaries focused on digital customer services, health care and agriculture. The idea was to incubate these businesses inside the Vancouver-based telecom, then launch them as public companies, with Telus shareholders reaping rewards from the value created on Mr. Entwistle's watch. Telus International – rebranded in 2024 as Telus Digital Experience – was meant to be the first in a series of spinoffs. Telus Health is up next, with an IPO anticipated as early as 2026. The incubator concept initially looked like a winner, as Telus Digital went public in 2021 at US$25 per share in what the parent company proudly heralded as the largest tech IPO in Toronto Stock Exchange history. At the time, Telus Digital's US$8.5-billion market capitalization rivalled that of the parent telecom. Execution failed to match ambition. Telus Digital proved a case study in value destruction. The company's challenges include a core business that runs call centres for clients such as retailers, hotels and banks. Artificial intelligence-based systems now dominate this space. Telus Digital proved slow to pivot, and customers moved on. On Wednesday, Telus reversed field by making a 'non-binding indication of interest,' or IOI, to acquire the 42.6 per cent of Telus Digital shares it doesn't own for US$3.40 each. Telus Digital shares promptly jumped 24 per cent Thursday to close at US$3.67 on expectations the parent company will be forced to goose its bid to get a deal done. Mr. Entwistle put a brave face on Telus Digital's face plant. In announcing the IOI, he said reintegrating the unit's tech expertise will benefit all of Telus's businesses, including telecom. While that may be true, buying back the subsidiary is an admission of failure. Telus set lofty goals for its diversification strategy, then failed to hit them. Telus proposes buying back Telus Digital for more than US$400-million Telus Health prepares to stand alone after years of acquisitions 'Today's rather dismal proposal has no 'congratulatory' terms that were to be found at the time of the IPO,' said analyst Tyler Tebbs at Tebbs Capital in a report. He said Telus is only offering to repurchase its subsidiary after failing to find a buyer for the business. Memories are long in financial circles. Mr. Tebbs compared the Telus offer to the ill-fated M&A at Time Warner Inc. in the recent past. He said the buyback 'is yet another example of a telecom/media company reversing a transaction done in much better times at the expense of shareholders.' In public markets, you're only as good as your last deal. Fund mangers got caught up in a craze for all things digital during the early days of the pandemic. That dynamic set the stage for a successful IPO at Telus Digital. The second time around, institutional and retail investors will be far more skeptical about buying when Mr. Entwistle is selling. To get an IPO done at Telus Health or Telus Agriculture, the parent company will likely be forced to accept a steep discount to the underlying value of the business, which defeats the purpose of the incubator concept. Yet without the ability to exit investments, Mr. Entwistle is running a debt-heavy conglomerate, anchored by a well-run but slow-growth telecom network that qualifies as critical infrastructure for the Canadian economy. Outside of founder-run businesses, it's hard to name a domestic public company more identified with its CEO than Telus. At Telus Digital, Mr. Entwistle's IPO-based growth strategy failed to deliver. The Telus board, chaired by former deputy prime minister John Manley, needs to ask hard questions about what comes next and who is best positioned to lead a business that has become the vision of a single executive.
CTV News
12-06-2025
- Business
- CTV News
Telus Corp. proposes to buy back full ownership of Telus Digital
Telus Corp. headquarters is seen in downtown Vancouver. THE CANADIAN PRESS/Darryl Dyck VANCOUVER — Telus Corp. has proposed to buy back full ownership of Telus International (Cda) Inc. in a proposal that values the company it spun off in 2021 at about US$940 million. Under the non-binding indication of interest, Telus says it will pay $3.40 per share in cash or Telus shares or a combination of both for the shares in the company which operates as Telus Digital that it does not already hold. Telus International shares, which closed at $2.96 on the New York Stock Exchange (NYSE) on Wednesday, were up 71 cents US at US$3.67 in trading Thursday. The shares were up 95 cents at C$5.00 in trading on the Toronto Stock Exchange (TSX). The company, which provides IT services and customer service to global clients, went public in 2021 with an initial public offering of $25 per share. Telus already owns 57.4 per cent of the company's outstanding shares including 92.5 per cent of the multiple voting shares and 6.1 per cent of the subordinate voting shares, making its offer worth about $400 million. Telus chief executive Darren Entwistle says the proposed deal will yield meaningful benefits for Telus Digital and Telus customers and investors. This report by The Canadian Press was first published June 12, 2025.
Winnipeg Free Press
12-06-2025
- Business
- Winnipeg Free Press
Telus Corp. proposes to buy back full ownership of Telus Digital
VANCOUVER – Telus Corp. has proposed to buy back full ownership of Telus International (Cda) Inc. in a proposal that values the company it spun off in 2021 at about US$940 million. Under the non-binding indication of interest, Telus says it will pay US$3.40 per share in cash or Telus shares or a combination of both for the shares in the company which operates as Telus Digital that it does not already hold. Telus International shares, which closed at US$2.96 on the New York Stock Exchange on Wednesday, were up 71 cents US at US$3.67 in trading Thursday. The shares were up 95 cents at C$5.00 in trading on the Toronto Stock Exchange. The company, which provides IT services and customer service to global clients, went public in 2021 with an initial public offering of US$25 per share. Telus already owns 57.4 per cent of the company's outstanding shares including 92.5 per cent of the multiple voting shares and 6.1 per cent of the subordinate voting shares, making its offer worth about US$400 million. Telus chief executive Darren Entwistle says the proposed deal will yield meaningful benefits for Telus Digital and Telus customers and investors. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published June 12, 2025. Companies in this story: (TSX:T, TSX:TIXT)
Yahoo
12-06-2025
- Business
- Yahoo
Telus Corp. proposes to buy back full ownership of Telus Digital
VANCOUVER — Telus Corp. has proposed to buy back full ownership of Telus International (Cda) Inc. in a proposal that values the company it spun off in 2021 at about US$940 million. Under the non-binding indication of interest, Telus says it will pay US$3.40 per share in cash or Telus shares or a combination of both for the shares in the company which operates as Telus Digital that it does not already hold. Telus International shares, which closed at US$2.96 on the New York Stock Exchange on Wednesday, were up 71 cents US at US$3.67 in trading Thursday. The shares were up 95 cents at C$5.00 in trading on the Toronto Stock Exchange. The company, which provides IT services and customer service to global clients, went public in 2021 with an initial public offering of US$25 per share. Telus already owns 57.4 per cent of the company's outstanding shares including 92.5 per cent of the multiple voting shares and 6.1 per cent of the subordinate voting shares, making its offer worth about US$400 million. Telus chief executive Darren Entwistle says the proposed deal will yield meaningful benefits for Telus Digital and Telus customers and investors. This report by The Canadian Press was first published June 12, 2025. Companies in this story: (TSX:T, TSX:TIXT) The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
