Telus Aims to Fully Acquire Digital Unit for Enhanced AI Control and Capabilities

Telus offers to fully own digital unit for greater control of AI capabilities

June 12 (Reuters) - Telus (T.TO), opens new tab said on Thursday it intends to acquire the shares in its listed digital services subsidiary it does not currently own, as the Canadian telecom firm seeks greater control of the unit's artificial intelligence capabilities. The company has offered $3.40 per share to acquire the shares it does not own in Telus Digital (TIXT.TO), opens new tab, valuing the unit at $946.8 million, according to Reuters' calculation. Telus currently holds about 57% of the digital unit's outstanding shares directly and through its other units. This is a 15% premium to the last closing price of the subsidiary's U.S.-listed stock. U.S.-listed shares of the digital unit are down more than 24% this year, severely lagging the parent company whose U.S. listing is up nearly 19% this year. The move underscores Telus' push for more control of the digital unit, which helps businesses adopt AI and develop data strategies amid a worldwide push to harness the technology. "Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity... will enable enhanced AI capabilities and SaaS transformation across all lines of our business," Telus CEO Darren Entwistle said. Telus said last month it is investing more than C$70 billion ($51.40 billion) in Canada over the next five years to expand its network infrastructure in the country, which would be focused around launching two new AI data centers. Barclays is serving as Telus' financial advisor. ($1 = 1.3619 Canadian dollars) Reporting by Meghana Khare in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Telus offers to fully own digital unit for greater control of AI capabilities

Telus plans to acquire remaining shares of Telus Digital for $3.40 each, valuing it at $946.8 million, aiming to enhance AI capabilities and control. The move supports its broader $70 billion Canadian investment and digital transformation strategy.Telus said on Thursday it intends to acquire the shares in its listed digital services subsidiary it does not currently own, as the Canadian telecom firm seeks greater control of the unit's artificial intelligence capabilities. The company has offered $3.40 per share to acquire the shares it does not own in Telus Digital, valuing the unit at $946.8 million, according to Reuters' calculation. Telus currently holds about 57% of the digital unit's outstanding shares directly and through its other units. This is a 15% premium to the last closing price of the subsidiary's U.S.-listed stock. U.S.-listed shares of the digital unit are down more than 24% this year, severely lagging the parent company whose U.S. listing is up nearly 19% this year. The move underscores Telus' push for more control of the digital unit, which helps businesses adopt AI and develop data strategies amid a worldwide push to harness the technology. "Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity... will enable enhanced AI capabilities and SaaS transformation across all lines of our business," Telus CEO Darren Entwistle said. Telus said last month it is investing more than C$70 billion ($51.40 billion) in Canada over the next five years to expand its network infrastructure in the country, which would be focused around launching two new AI data centers. Barclays is serving as Telus' financial advisor.

Telus Digital to Review Proposal to Rejoin Telus -- Update

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 adriano.marchese@wsj.com

Telus Proposes Re-Merging With Telus Digital

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 adriano.marchese@wsj.com

Telus offers to fully own digital unit for greater control of AI capabilities

(Reuters) -Telus said on Thursday it intends to acquire the shares in its listed digital services subsidiary it does not currently own, as the Canadian telecom firm seeks greater control of the unit's artificial intelligence capabilities. The company has offered $3.40 per share to acquire the shares it does not own in Telus Digital, valuing the unit at $946.8 million, according to Reuters' calculation. Telus currently holds about 57% of the digital unit's outstanding shares directly and through its other units. This is a 15% premium to the last closing price of the subsidiary's U.S.-listed stock. U.S.-listed shares of the digital unit are down more than 24% this year, severely lagging the parent company whose U.S. listing is up nearly 19% this year. The move underscores Telus' push for more control of the digital unit, which helps businesses adopt AI and develop data strategies amid a worldwide push to harness the technology. "Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity... will enable enhanced AI capabilities and SaaS transformation across all lines of our business," Telus CEO Darren Entwistle said. Telus said last month it is investing more than C$70 billion ($51.40 billion) in Canada over the next five years to expand its network infrastructure in the country, which would be focused around launching two new AI data centers. (Reporting by Meghana Khare in Bengaluru; Editing by Leroy Leo)