Telus Corp. announced Wednesday that it intends to raise $1.3 billion through a sale of shares, with an additional over-allotment which could boost the deal to a total value of $1.5 billion.
The company said the money will be used “for general corporate purposes including funding growth opportunities, capital expenditures and the reduction of indebtedness.”
In a news release, the Vancouver-based telecom company said the deal was led by RBC Capital Markets and TD Securities, with CIBC, BMO and Scotiabank also involved in the deal.
The equity raise announcement comes a week after Telus reported fourth-quarter earnings, which included a two-for-one share split.
The company said that it expects the deal to close on or about Feb. 26.
The announcement comes at a time of significant investment for Canadian telecom companies, with all three of the large wireless network operators building out 5G networks, with plans to launch service later this year. The Canadian government is also expected to auction wireless spectrum in 2020 and 2021, which could be a significant expense for wireless network operators.
In December, Telus bought German call-centre company Competence Call Center for $1.3 billion in cash and stock.
Financial Post
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