What's Happening?
TELUS Corporation has received approval from the Toronto Stock Exchange for a new normal course issuer bid (NCIB) to purchase and cancel up to C$500 million in shares over the next 12 months. This program
allows TELUS to buy back up to 28 million shares, which is approximately 1.81% of its outstanding shares as of December 10, 2025. The shares can be purchased through the facilities of the TSX, the New York Stock Exchange, and alternative Canadian trading systems. TELUS has not purchased any of its shares in the past 12 months, and all shares bought under this program will be canceled. The company may also engage in private purchases at a discount to the market price, subject to regulatory approvals.
Why It's Important?
The approval of this share buyback program is significant as it reflects TELUS' strategy to enhance shareholder value by reducing the number of shares outstanding, which can increase earnings per share and potentially boost the stock price. This move is seen as a vote of confidence by TELUS' management in the company's financial health and future prospects. Share buybacks are often used by companies to return capital to shareholders and can be an attractive investment opportunity, especially when the company believes its shares are undervalued. This action may positively impact TELUS' stock performance and investor sentiment.
What's Next?
TELUS may implement an automatic share purchase plan with a broker to facilitate share purchases during internal blackout periods. This plan would allow the broker to buy shares based on prearranged parameters, ensuring the buyback program continues smoothly. The company will monitor market conditions and its financial performance to determine the timing and volume of share purchases. TELUS' board believes that the buyback will be in the best interest of the company and its shareholders, and they will continue to evaluate the program's effectiveness in enhancing shareholder value.
