Canadian telco Telus Corporation is seeking to raise up to CAD1.5 billion (USD1.1 billion) via a share sale, by issuing up to 25 million new shares worth CAD1.3 billion (at CAD52 per share), with total proceeds to reach a maximum CAD1.5 billion if an over-allotment procedure is exercised, the company said in a statement reported by Baystreet.ca. The share sale is being conducted on a ‘bought-deal basis’ with Canada’s five largest banks acting as bookrunners. Telus added that it intends to use the share proceeds for general corporate purposes such as funding growth opportunities, capital expenditures and reducing debt.
The share offering is subject to approval from the Toronto Stock Exchange and New York Stock Exchange (where Telus’ shares are distributed under the respective symbols T and TU) with closing expected to occur around 26 February. A previously-announced two-for-one stock split will take effect for Telus shareholders on 17 March.
Telus also announced the milestone of expanding its mobile network services to every community in British Columbia (BC) with a population of 1,000 people or more, with the most recent communities to be reached named as Gold River on Vancouver Island, and Ahousaht off the coast of Tofino. More than 99% of BC residents have access to Telus’ 4G LTE network. Furthermore, Telus highlighted that it currently serves 178 of BC’s 203 Indigenous communities with wireless and fixed broadband technologies, and has partnered 46 Indigenous Governments to provide Telus PureFibre services. Telus committed investment of CAD4.7 billion for BC between 2017 and 2020.