Telus submits indication of interest to buy Telus Digital for $3.40 per share

Telus (TU) announced that it has submitted a non-binding indication of interest to the board of directors of Telus International (TIXT) in respect of a proposed transaction pursuant to which Telus would, directly or indirectly through one of its subsidiaries, acquire all of the issued and outstanding subordinate voting shares and multiple voting shares of Telus Digital not already owned directly or indirectly by Telus for a price per share of $ 3.40 to be paid in cash, Telus Digital common shares or a combination of both. The proposed price represents a premium of approximately 15% to Telus Digital’s closing share price on the New York Stock Exchange on June 11. Telus has asked the Telus Digital board of directors to begin a process to review the IOI and appoint a special committee of independent directors to evaluate the proposal. The IOI is a non-binding indication of interest and is subject to, among other matters, confirmatory due diligence satisfactory to Telus, agreement on transaction structure, the negotiation and execution of mutually acceptable definitive transaction documents, and the approval of the proposed acquisition by the Telus Digital board of directors. Further, the consummation of the proposed acquisition, even if definitive transaction documents are entered into, would be subject to customary closing conditions for transactions of this nature, including, among others, the receipt of shareholder approvals required under applicable securities laws.