Telus Announces Agreement to Acquire Shares of Telus International

Rhea-AI Summary

TELUS Corporation announced the acquisition of 3,000,000 multiple voting shares of TELUS International from Baring Private Equity Asia for US$66 million, priced at US$22.00 per share. This purchase represents approximately 1.5% of the total multiple voting shares of TELUS International, increasing TELUS's ownership to about 56.17% of its outstanding shares. CEO Darren Entwistle expressed confidence in TELUS International’s growth prospects. The acquisition aligns with TELUS's strategic investment strategy, emphasizing continued support for its international team.

Positive

• Acquisition enhances TELUS's stake in TELUS International to approximately 56.17%, ensuring greater control over business strategies.
• The share purchase reflects a strong belief in TELUS International's profitable growth trajectory.
• Strategic acquisition may lead to synergies and expansion in market presence.

Negative

• None.

VANCOUVER, British Columbia, June 29, 2022 (GLOBE NEWSWIRE) -- TELUS Corporation (“TELUS”) today announced that its indirect, wholly-owned subsidiary has entered into a purchase agreement with an entity affiliated with Baring Private Equity Asia (“BPEA”) relating to the acquisition by TELUS of 3,000,000 multiple voting shares (the “Purchased Shares”) in the capital of TELUS International (Cda) Inc. (“TELUS International”) from BPEA.

The purchase of the Purchased Shares is being made pursuant to the private agreement exemption set forth in section 4.2 of National Instrument 62-104.

“Following thoughtful consideration, it is our strong belief that this represents an attractive opportunity to invest further in TELUS International,” commented Darren Entwistle, President and CEO of TELUS. “This share purchase is reflective of our strong, ongoing confidence in the continued prospects and robust profitable growth trajectory of the TELUS International organization, and demonstrates our continued support for our TELUS international team and their strategic objectives.”

The Purchased Shares represent approximately 1.5% of the outstanding multiple voting shares of TELUS International and approximately 1.1% of all outstanding shares. The Purchased Shares are being acquired for a purchase price of US$22.00 per Purchased Share, representing aggregate consideration of US$66,000,000.

Before giving effect to the purchase, TELUS held an aggregate of 146,504,019 multiple voting shares of TELUS International and no subordinate voting shares, representing approximately 73.28% of the outstanding multiple voting shares, 70.93% of the outstanding voting rights attached to all shares of TELUS International and approximately 55.04% of the total shares outstanding. After giving effect to the purchase, TELUS will hold an aggregate of 149,504,019 multiple voting shares and no subordinate voting shares. Upon completion of the acquisition, the shares held by TELUS will represent approximately 56.17% of the outstanding shares of TELUS International, 74.78% of the outstanding multiple voting shares of TELUS International and 72.38% of the outstanding voting rights of TELUS International.

TELUS purchased the Purchased Shares for investment purposes and may or may not purchase or sell multiple voting shares, subordinate voting shares or other securities of TELUS International in the future on the open market or in private transactions, depending on market conditions and other factors. TELUS currently has no other plans or intentions that relate to its investment in TELUS International. Depending on market conditions, general economic and industry conditions, TELUS International’s business and financial condition and/or other relevant factors, TELUS may at any time develop other plans or intentions in the future relating to one or more of the above items. A copy of the early warning report to be filed by TELUS in connection with the acquisition will be available on TELUS International’s profile on SEDAR at www.sedar.com. Alternatively, you may contact Robert Mitchell (TELUS Investor Relations) at 1-800-667-4871 in order to obtain a copy of the report.

The headquarters and principal executive offices of TELUS International are located at Floor 7, 510 West Georgia Street, Vancouver, British Columbia, Canada V6B 0M3

About TELUS

TELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with $17 billion in annual revenue and 17 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. Our social purpose is to leverage our global-leading technology and compassion to drive social change and enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. 6 The numerous, sustained accolades TELUS has earned over the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS’ global-leading networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better.

TELUS Health is Canada’s leader in digital health technology, improving access to health and wellness services and revolutionizing the flow of health information across the continuum of care. TELUS Agriculture provides innovative digital solutions throughout the agriculture value chain, supporting better food outcomes from improved agri-business data insights and processes. TELUS International (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands across high-growth industry verticals, including tech and games, communications and media and ecommerce and FinTech. TELUS and TELUS International operate in 28 countries around the world.

Consistent with our community philosophy of "We give where we live" and our commitment to connecting all citizens to make the world a better place, TELUS team members, current and retired, have donated more than $900 million and 1.8 million volunteer days to the community since 2000. Their unprecedented generosity and outstanding contributions have made TELUS the world's largest corporate donor. Together, we're making the future friendly.

For more information about TELUS, visit telus.com and follow us on Twitter (@TELUSnews) and Instagram (@Darren_Entwistle).

Investor Relations
Robert Mitchell
(647) 837-1606
ir@telus.com

Media Relations
Steve Beisswanger
(514) 865-2787
Steve.Beisswanger@telus.com

FAQ

What is the acquisition value of TELUS International by TELUS?

TELUS acquired 3,000,000 shares of TELUS International for a total of US$66 million.

How much of TELUS International does TELUS own after the acquisition?

After the acquisition, TELUS will own approximately 56.17% of the outstanding shares of TELUS International.

Who sold the shares to TELUS?

The shares were sold to TELUS by an entity affiliated with Baring Private Equity Asia.

What is the price per share TELUS paid for TELUS International?

TELUS paid US$22.00 per share for the acquisition of TELUS International shares.

What does TELUS intend to do with the purchased shares?

TELUS purchased the shares for investment purposes and has no immediate plans for further transactions.