VANCOUVER – Telus says board approval of its two-for-one stock split of its common shares will enhance its trading liquidity and improve share affordability. The move will double the number of shares outstanding to approximately $653.6 million, but cut each one’s price in half.
“This two-for-one stock split builds on Telus’ excellent track record in respect of shareholder friendly initiatives. Notably, it will enhance our share trading liquidity and improve the affordability of our shares for retail investors,” said Darren Entwistle, president and CEO, Telus, in a release.
On April 16, 2013, Telus shareholders will receive one additional share for each share owned on the record date of April 15, 2013, subject to completion and approval of regulatory filings with the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE). Telus common shares after the stock split are expected to commence trading on or about April 17, 2013 on the TSX and the NYSE.
Telus’ shareholder initiatives include:
- Exchanging on February 4, 2013 all of Telus’ 151 million non-voting shares on a one-for-one basis into common shares, providing enhanced trading volumes and marketability with the common shares being listed on the New York Stock Exchange for the first time;
- Delivering on our dividend growth model, a three-year program to increase share dividends by approximately 10% a year from 2011 through 2013. This growth model is supported by a long-term clear dividend payout guideline, which was recently increased 10 points to 65 to 75% of prospective EPS; and
- Providing investors, at our shareholder meeting of May 9, with an update on our dividend growth model for the next three year period of 2014 through 2016. Additionally, at the May 9 meeting, clarifying the company's intentions with respect to a multi-year share repurchase program.
