VANCOUVER and HONG KONG – Telus has closed the sale of the 35% stake of Telus International to Baring Private Equity Asia, the company said Wednesday.
The $600 million deal, first announced on May 5, values Telus International at $1.2 billion. Launched in 2005, the Telus subsidiary provides customer service, IT, and business process services to the telecommunications, utilities, high tech, gaming, finance, retail, e-commerce, travel and logistics, and health care sectors.
"Telus International is now poised, with the backing and support of Telus and Baring Asia, to continue its rapid growth in the years ahead," said Josh Blair, Telus' chief corporate officer and Telus International chair, in a statement. "Under the continuing leadership of Jeffrey Puritt, president and CEO of Telus International and now an executive vice-president of Telus, I am confident that our 22,000 Telus International team members will continue to advance our leading culture and deliver customer experience innovation for the benefit of our clients across the globe."
In other company news, Moody's Investors Service has placed Telus’ Baa1 senior unsecured ratings on review for downgrade while also affirming the company's Prime-2 commercial paper rating. The review, expected to be completed within 30 to 60 days, will primarily focus on the use of cash flow for shareholder returns and capital expenditures as those management choices impact leverage and free cash flow flexibility, said Moody’s.
