On May 31, 2016, TELUS Corporation (TELUS) completed a previously-announced transaction whereby Baring Private Equity Asia (Baring Asia) acquired a 35-per cent equity stake in TELUS International (Cda) Inc. (TELUS International). In connection with the transaction, TELUS has also arranged an incremental US$330 million in bank financing, which is secured by assets of TELUS International and its subsidiaries and is non-recourse to TELUS. Through this transaction and the incremental debt within TELUS International, TELUS will receive proceeds of approximately $600 million that will fund the expansion and advancement of TELUS’ broadband wireline and wireless networks.
TELUS International was valued at $1.2 billion for the purposes of the transaction. TELUS International is a global provider of customer service, IT, and business process services with more than 22,000 team members around the world, including in Canada, the United States, Europe, Central America and Asia.
Baring Private Equity Asia is one of the largest and most established independent alternative asset management firms in Asia, with a total committed capital of over $13 billion (US$10 billion).
TELUS was represented in-house by a team that included Monique Mercier, Andrea Wood, Andras Vagvolgyi, Michel Belec, Jeff Brown, Andre Cyr and Eric Poole and by Stikeman Elliott LLP, with a team that included Sidney Horn, Peter Castiel, Sophie Lamonde, Stewart Sutcliffe, Gayle Noble, Kevin Custodio, Olivier Godbout, Magali Brunelle and Daniel Glavin (corporate and M&A).
Norton Rose Fulbright Canada LLP represented TELUS in connection with the senior secured credit facilities (the Credit Facilities) with a team that included Nicole Sigouin, Suzana Lobo, Michael Moher, Kaitlind de Jong, Gautam Dhillon and Barry Segal.
The Credit Facilities were made available by a syndicate of lenders led by The Bank of Nova Scotia and The Toronto-Dominion Bank. Fasken Martineau DuMoulin LLP represented the lenders with a team that included John Torrey, David Ferris, Dev Singh and Aine O’Connor.
Osler, Hoskin & Harcourt LLP advised TELUS on the corporate reorganization which preceded the transaction, with a team that included Robert Yalden, Patrick Marley, Paul Seraganian, Chris Sheridan, Chris Greenaway and Ramin Wright (corporate and tax).
Baring Asia was represented by Ropes & Gray LLP, with a team that included Neill Jakobe, Brian Schwarzwalder, Elaine Murphy, Will Rosen, Andrew Dale, William Sussman, James DeGraw, Thomas Burke, Deidre Johnson, Hunter Sharp and Patrick Nash (corporate, M&A and tax).