Telus International shareholders urged to support deal

The most recent news, from October 14, 2025, announces that two leading independent proxy advisory firms, including Institutional Shareholder Services Inc. (ISS), have recommended that shareholders of Telus International (TIXT) vote in favour of the proposed acquisition by its parent company, Telus Corporation.

ISS highlighted several key reasons for its recommendation, including an "attractive mixed-consideration offer" representing a 51.8% premium to the unaffected price, the unlikelihood of a more compelling offer emerging, and the "standalone execution risk" of TIXT. The company's board, a special committee of independent directors, and the largest minority shareholder (Riel B.V. - EQT) also support the transaction. The news reiterates the details for the special shareholder meeting scheduled for October 27, 2025.

This news is materially positive as it significantly de-risks the transaction and increases the probability of a successful shareholder vote. Recommendations from influential proxy advisory firms like ISS carry substantial weight with institutional investors, who often follow their guidance. With their endorsement, the required approvals—two-thirds of all votes and a simple majority of minority shareholder votes—are now highly likely to be achieved.

The stock price is no longer trading on the fundamentals of Telus International's standalone business. Since the acquisition was announced (evidenced by the large price gap-up on September 2, 2025), the stock has been trading as a proxy for the deal's value. The price of $6.26 is significantly above the US$4.50 all-cash option, indicating the market is valuing the share-based consideration and expects the deal to close.

This news solidifies the market's confidence. By reducing the primary risk—that shareholders reject the deal—it shores up the current price level and narrows the arbitrage spread. While it may not cause a major price jump (as the market had already priced in a high probability of success), it removes a key uncertainty and protects against potential downside that would exist if ISS had recommended against the deal.

Telus International (Cda) Inc., also known as Telus Digital, is a digital customer experience (CX) and IT services company. It designs and delivers digital solutions, including AI-powered applications, for global brands. The company is a subsidiary of Telus Corporation, a major Canadian telecommunications firm.

While the company continues to operate and launch new products, such as the "Fuel iX Fortify" AI security application mentioned in the October 1st news, its primary "project" and focus is now the successful completion of its acquisition by its parent company, Telus Corporation.