Canadian telecom company Telus has proposed buying all remaining shares of its listed digital services subsidiary, Telus Digital for $3.40 per share.

The price represents a 15% premium over Digital’s 11 June 2025, closing price on the New York Stock Exchange and a 23% premium over its 30-day volume-weighted average price on Canadian and US markets.

The digital arm operates across various industries, including technology, communications, Fintech, travel, retail, healthcare, and automotive.

The move is part of the company’s strategy to tighten its grip on the unit’s AI capabilities.

Telus president and CEO Darren Entwistle said: “Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business.”

Telus already owns 57.4% of the digital arm’s shares, including 152,004,019 multiple voting shares and 6,874,822 subordinate voting shares, holding 86.9% of voting power, per Digital’s Q1 2025 financials.

The non-binding offer, which could be paid in cash, Telus shares, or a mix of both, hinges on due diligence, a mutually agreed transaction structure, and definitive agreements.

It also needs approval from Telus Digital’s board, and has therefore urged Digital’s board to form a special committee of independent directors to review the proposal.

At this stage, no formal agreement has been established, and there is no guarantee that a transaction will occur, according to the company.

Entwistle added: “We anticipate that our deep familiarity with Telus Digital will enable us to conclude this proposed transaction, with appropriate engagement from Telus Digital, quickly and efficiently and, post-closing, effectively integrate the business and the team.

“Telus Digital will continue to be an important business unit within Telus, underscored by its demonstrated leadership in customer service excellence, digital transformation and heartfelt caring in the communities where team members live, work and serve.”

Barclays is acting as the exclusive financial advisor to Telus, while Stikeman Elliott and A&O Shearman are providing legal counsel.

In May 2025, Telus announced plans to invest more than C$70bn ($51bn) in Canada by 2029 to enhance its network infrastructure.

The investment will focus on launching two new AI data centres, expanding wireless coverage in rural areas, and reducing greenhouse gas emissions through eco-friendly technologies.