TELUS International (Cda) Inc.
(TIXT-N, TIXT-T) US$16.61 | C$22.46
TELUS Acquires 2.5mm Multiple Voting Shares from BPEA Event
TELUS announced that it has entered into a purchase agreement with Baring Private Equity Asia (BPEA) to acquire 2.5mm multiple voting shares (MVS) of TI for US $42.3mm, representing a purchase price of US$16.90/share. The purchased shares represent ~1.3% of the outstanding MVS and ~0.9% of the fully diluted shares outstanding.
Impact: NEUTRAL
After the purchase, TELUS will hold ~152.0mm MVS and ~1.4mm subordinate voting shares (SVS), representing 56.1% of the fully diluted shares and 73.4% of the voting power. BPEA will continue to hold the remaining ~47.9mm MVS, representing 23.4% of the voting power.
This is the second instance of BPEA selling its shares directly to TELUS. In June 2022, BPEA sold 3.0mm shares for US$66.0mm, representing 1.5% of MVS outstanding and 1.5% of the voting power. TELUS' existing shareholder agreement with BPEA allows right of first offer to purchase any shares in connection with a sale in excess of US$10mm.
Although these deals may be relatively small, we believe this is a positive signal in TELUS' confidence in TI's financial outlook and could alleviate the overhang on the shares regarding the potential for BPEA wanting to liquidate a portion of its holding in TI.