TELUS (TSE:T) Expands Stake in TELUS Digital with Acquisition of 2.6 Million Shares

2 min read | August 16, 2024 05:43 AM EDT | By Team Kalkine Media

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TELUS (TSE:T) Expands Stake in TELUS Digital with Acquisition of 2.6 Million Shares — Image source: shutterstock

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TELUS Corporation (TSE:T) has announced a significant acquisition through its wholly owned subsidiary. The company has purchased a total of 2,593,178 subordinate voting shares of TELUS International (Cda) Inc. ("TELUS Digital") through market transactions conducted on the Toronto Stock Exchange. This acquisition represents a notable investment, with the newly acquired shares accounting for over 2% of TELUS Digital's outstanding subordinate voting shares as compared to the figures reported in TELUS' earlier disclosure on May 16, 2023.

The recent purchase of subordinate voting shares translates to approximately 2.3% of the total outstanding subordinate voting shares of TELUS Digital, and about 0.9% of the entire share count of the company. The average purchase price for these shares was C$4.25 each.

This acquisition falls under the normal course purchase exemption as outlined in section 4.1 of National Instrument 62-104. This regulatory provision allows companies to repurchase shares in the open market without needing to disclose every transaction, provided they adhere to certain guidelines and limits.

TELUS' investment in TELUS Digital is part of its ongoing strategy to consolidate its holdings and strengthen its presence in the digital sector. By increasing its stake in TELUS Digital, TELUS aims to enhance its operational efficiencies and leverage synergies between its various business units. The acquisition underscores TELUS' commitment to expanding its influence in the technology and digital services space.

The purchase is also reflective of TELUS' broader strategy to strategically manage its investments and optimize its portfolio. By acquiring these shares at a relatively favorable price, TELUS is positioning itself to potentially benefit from future growth and value appreciation in TELUS Digital.

Overall, this move highlights TELUS' proactive approach in navigating market opportunities and managing its assets effectively. As TELUS continues to execute its strategic objectives, stakeholders and analysts will be closely watching how these investments contribute to the company's long-term growth and success in the competitive digital landscape.

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