TELUS Corporation offers to buy remaining TELUS Digital shares

VANCOUVER - TELUS Digital Experience (NYSE and TSX: TIXT) announced Thursday it has received an unsolicited non-binding proposal from TELUS Corporation (TSX: T, NYSE: TU), a prominent player in telecommunications with a market capitalization of $204 billion and currently trading near its 52-week high at $28.34, to acquire all remaining shares of TELUS Digital not already owned by TELUS Corporation for US$3.40 per share.

The proposal is conditional upon several factors, including due diligence completion, negotiation of an acquisition agreement, support from key shareholders, and final approval from TELUS Corporation’s board of directors. The transaction would need to comply with applicable Canadian and U.S. securities laws, potentially requiring a formal valuation and shareholder approval. According to InvestingPro data, TELUS Corporation has maintained dividend payments for 42 consecutive years and achieved a remarkable 69% return over the last year.

TELUS Digital’s board plans to form a special committee of independent directors to review and evaluate the proposal. The company cautioned shareholders that no decisions have been made regarding the proposal, and there is no guarantee that a binding offer will be received or that any transaction will be completed.

No action is required by TELUS Digital shareholders at this time, according to the company statement.

TELUS Digital, which specializes in digital customer experiences, provides services including customer experience management, digital solutions, AI-fueled automation, digital design, and trust and security services. The company made this announcement based on information contained in a press release statement. For deeper insights into TELUS Corporation’s financial health (rated GOOD by InvestingPro) and additional analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, AT&T has unveiled its multi-year strategic growth plan, highlighted by the acquisition of Lumen’s Mass Markets fiber internet connectivity business. This move aims to enhance AT&T’s fiber internet and 5G services across the United States, with the deal expected to close in the first half of 2026. AT&T projects capital investments between $4.5 billion and $5 billion for the second quarter of 2025, alongside an expected free cash flow of around $4 billion. Additionally, the company has committed to a $10 billion share repurchase authorization, planning to buy back at least $3 billion in common stock by the end of the year.

Analyst firm Evercore ISI has maintained its In Line rating on AT&T, with a price target of $27, viewing the Lumen acquisition as a strategic fit that aligns with AT&T’s connectivity expansion goals. Meanwhile, Bernstein SocGen Group raised AT&T’s stock price target to $30, citing the company’s success in growing its subscriber base through its fiber-led bundle strategy and effective churn management. In other developments, AT&T has warned its shareholders against a mini-tender offer by TRC Capital Investment Corporation, which seeks to acquire shares below the current market price. AT&T advises shareholders to reject the offer and consult with financial advisors for guidance.

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