Foreign ownership materially declines
Supreme Court of B.C. share exchange decision expected in coming weeks
2013 financial targets being released in February
VANCOUVER, Nov. 30, 2012 /CNW/ - TELUS announced today it has observed a
material reduction in the non-Canadian ownership of its common shares to
approximately 15 per cent as of November 16, 2012. This is down from almost 33
per cent when TELUS disclosed foreign ownership levels in March and July, and
is consistent with TELUS' typical foreign ownership levels for the last few
years. Accordingly, all requests by non-Canadians for a reservation to
purchase common shares are being considered and approved, if they do not risk
causing TELUS to exceed the foreign ownership threshold.
TELUS has also observed a significant reduction in the short positions being
held of its common and non-voting shares.
Based in part on this change in foreign ownership levels and short trading
positions, TELUS believes Mason Capital has materially reduced both its long
and short positions in the company. Mason last disclosed its ownership levels
in August, which was 18.7 per cent of TELUS common shares. Notably, given the
current total foreign ownership level of only 15 per cent and historical level
of approximately 13 per cent, Mason has clearly reduced a significant portion
of its holdings.
The Alternative Monthly Reporting System under which Mason has previously
disclosed its trading position in TELUS shares only requires disclosure within
10 days of the end of a month in which there is a material change in the
position. Accordingly, it is possible that Mason may borrow or otherwise
acquire shares on a short-term basis at month-end to avoid a reporting
Background and update on expected timing of B.C. Supreme Court decision on
final approval of share exchange proposal
On March 22, 2012, TELUS informed investors that due to a sudden 20 percentage
point increase in non-Canadian ownership of its common shares its transfer
agent, Computershare, may not be able to approve all pending or new
applications by foreign investors to purchase more shares, if this increased
foreign ownership levels over the prescribed limit of 33.3 per cent.
Subsequently, New York hedge fund Mason Capital disclosed it had acquired
approximately 20 per cent of TELUS common shares, offsetting its ownership
with almost as many short trades in common and non-voting shares. On July 23,
2012, TELUS confirmed in a filing to the Canadian Radio-Television and
Telecommunication Commission (CRTC) that 32.59 per cent of TELUS' common
shares were held by non-Canadians as of June 29, 2012.
Mason Capital opposed TELUS' proposal to exchange its non-voting shares for
common shares on a one-for-one basis in an attempt to profit from its short
trades by increasing the spread between the trading price of common and
At an October 17 meeting, both classes of TELUS shareholders overwhelmingly
approved the one-for-one exchange. Subsequent to that meeting, a Supreme Court
of British Columbia hearing was held to hear appeals by Mason of previous
decisions and for final approval of the share exchange. A decision is expected
in the coming weeks.
TELUS to disclose 2013 financial targets on February 15, 2013
TELUS plans to announce its 2013 financial targets on February 15, at the same
time it releases 2012 fourth quarter results. Prospectively, this will be
standard procedure for TELUS in respect of the timing of the disclosure of our
forward looking, annual financial targets.
Forward looking statement:
This news release contains statements about expected future events of TELUS
that are forward-looking. By their nature, forward-looking statements require
the Company to make assumptions and predictions and are subject to inherent
risks and uncertainties. There can be no assurance that the share exchange
proposal will receive Court approval and, if not approved, the market price of
non-voting shares and/or common shares may decline given that share prices in
both classes increased on the announcement of the February proposal. Also,
there can be no assurance that a court decision will be released in the
expected time or that there will not be further court challenges or appeals.
In addition, foreign ownership levels are based on estimates as of November
16, 2012, and there can be no assurance that levels will not change. There is
significant risk that the forward-looking statements will not prove to be
accurate. Readers are cautioned not to place undue reliance on forward-looking
statements as a number of factors could cause actual future events to differ
materially from that expressed in the forward-looking statements. Except as
required by law, TELUS disclaims any intention or obligation to update or
revise forward-looking statements.
TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company
in Canada, with $10.8 billion of annual revenue and 13.0 million customer
connections including 7.6 million wireless subscribers, 3.4 million wireline
network access lines, 1.3 million Internet subscribers and more than 635,000
TELUS TV customers. Led since 2000 by President and CEO, Darren Entwistle,
TELUS provides a wide range of communications products and services including
wireless, data, Internet protocol (IP), voice, television, entertainment and
In support of our philosophy to give where we live, TELUS, our team members
and retirees have contributed more than $260 million to charitable and
not-for-profit organizations and volunteered 4.2 million hours of service to
local communities since 2000. Fourteen TELUS Community Boards lead TELUS'
local philanthropic initiatives. TELUS was honoured to be named the most
outstanding philanthropic corporation globally for 2010 by the Association of
Fundraising Professionals, becoming the first Canadian company to receive this
prestigious international recognition.
For more information about TELUS, please visit telus.com.
For media inquiries, please contact:
Shawn Hall TELUS Social and Media Relations 604-697-8176 email@example.com
For investor inquiries, please contact:
Robert Mitchell TELUS Investor Relations 647-837-1606 firstname.lastname@example.org
SOURCE: TELUS Corporation
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CO: TELUS Corporation
ST: British Columbia
-0- Nov/30/2012 13:00 GMT
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