VANCOUVER – Telus Corp. has agreed to sell 35 per cent of its international call-centre and outsourcing subsidiary to an Asian private equity firm and expects to receive about $600 million in proceeds from the deal.
Telus International currently employs about 22,000 people in the United States, Philippines, Canada, Europe and Central America.
It was formed in 2005 to provide customer service, information technology and business process services to companies in various industries.
Vancouver-based Telus (TSX:T) will continue to own 65 per cent of Telus International, which the company says is worth about US$1 billion or C$1.2 billion based on the price paid by Baring Private Equity Asia.
The transaction was announced Thursday along with the Telus first-quarter financial report, which showed net income dropped 9.1 per cent to $378 million.
Adjusted earnings that excludes restructuring and other costs fell by 3.0 per cent to $414 million.
Net income per share dropped to 64 cents from 68 cents while adjusted earnings were flat at 70 cents per share.
Analysts had estimated adjusted earnings would be 71 cents per share.
Telus president and chief executive Darren Entwistle noted that the company has faced economic challenges, particularly in Alberta, but remains operationally resilient.
Operating revenue for the three months ended March 31 were $3.11 billion, up 2.6 per cent from $3.03 billion a year earlier and within analyst estimates.
Entwistle said the deal with Baring is “the next step” in the company’s growth and the proceeds will contribute to the company’s resources for advancing the Telus broadband land line and wireless networks.
Telus also announced its quarterly dividend will rise to 46 cents per share, starting with the July 4 payment, up two cents from the dividend paid on April 1 and up four cents since July 2, 2015.