# Telus



## buaya (Jan 7, 2011)

And you wonder why we outsiders always get swipe away by these hedge funds

http://www.theglobeandmail.com/glob...ens-telus-share-exchange-plan/article2378286/


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## Cal (Jun 17, 2009)

It appears Telus is committed to making this go through, so if it does not go through this time, I am sure they will rework it so it does next time.


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## doctrine (Sep 30, 2011)

This is amusing. An increase in foreign ownership not because of anything to do with the business, but just for a chance to make 5% in 2 months.


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## londoncalling (Sep 17, 2011)

TELUS announces agreement to acquire LifeWorks, strengthening TELUS Health's position as a leading global d... (tmx.com) 

There are numerous threads on Telus across the forum but I thought I would post it here. Many forum members own shares in this company. I am linking another thread that discusses Telus's growth strategy. I do like the companies decision to move into health, ag etc but am not sure what to think of the recent purchase. At first glance it looks like they paid a hefty premium over the current Lifeworks(Morneau Sheppe) 
Another item of note is that this is their largest acquisition yet. Are they being overly ambitious with this move?

What to make of companies with over 100% payout ratio? | Canadian Money Forum


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## milhouse (Nov 16, 2016)

Reading the news release, I can _kind of _appreciate what T is trying to do here with the acquisition and synergies with their Health division. I'm guessing this a way to beef up their Health division's revenue which their CFO mentioned in one of those analyst talks as a prereq (also for Ag) before IPO'ing it. But with the equity markets as they currently are, who knows when an IPO would be feasible. 
Tactically, it sounds like T will likely use Lifework's EFAP product to direct and integrate into T's existing broad based and business focused health products. 

Can't say I fully understand how all the financials fit together to make sense. Lifeworks seems to be a profitable business so the acquisition shouldn't hurt T's bottom line but they are funding it with debt and shares so their debt is increasing (though it sounds like the debt to ebitda hit will be small since Lifeworks is profitable) and shares are being diluted.


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## londoncalling (Sep 17, 2011)

One thing I learned about Lifeworks as a part of this deal was that they have quite an extensive reach beyond NA. This will provide an opportunity for Telus to expand its reach outside Canada and its roots of being a Western Canadian telco. As we have seen in the Canadian banking sector, execution is important when trying to venture outside of the land of maple syrup. Some have seen success(TD) and other not so much(previous attempts by BMO(looks like recent activity has fared better for them than earlier attempts). Further complications come when a company's attempt to expand through acquisition is not complimentary to its typical business. I am not saying this is the case with Telus. Time will tell.


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## milhouse (Nov 16, 2016)

londoncalling said:


> One thing I learned about Lifeworks as a part of this deal was that they have quite an extensive reach beyond NA. This will provide an opportunity for Telus to expand its reach outside Canada and its roots of being a Western Canadian telco.


Yeah, that's probably part of it too. 
Telus has their Telus International division and the news release talked about capitalizing on synergies across it and Lifeworks' international relationships. Sounds great on paper but as you say, execution is important.


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