Telus or Telus International

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Hi,

What are your toughs about Telus VS Telus International wich is suppose to go public next year ? I know the LionBridge acquisiton will be part of it but what about the heath sector they are developping ? Would it be better to buy Telus now or to wait to buy Telus International when they IPO ?

Thanks again ! 🙂

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Asked on December 16, 2020 4:28 pm
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Hi there,

It is almost impossible to answer that question.

At the moment we have no details on the IPO, no valuation, no information on if current shareholders can exchange shares, get a portion of shares as a spinout, etc. All we know is that it expects to IPO in the first quarter of 2021. As for the Lionsbridge deal - I personally like it. Data is the future and LionBridge is a leading data company and grew revenue by 29% last year. From what I've read, it appears Telus International has grown by 20-25% annually, so it will certainly be a higher growth company that Telus itself.

Comparing the two is difficult however, because despite being own by Telus they are two very different operations. So I'd expect TI to have a higher valuation that Telus simply because it has a higher growth rate. In theory, they could both fit in an investor's portfolio. But waiting to buy until its IPO, is not a question we can really answer until we see all the company releases its prospectus and we can dig into the company in more depth and see how it prices.

Mat

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Posted by Mathieu Litalien
Answered on December 16, 2020 5:08 pm