TELUS Corporation ( TU Quick Quote TU - Free Report) recently announced that it had received the Ontario Superior Court of Justice (Commercial List) final order, which approves the plan of arrangement in respect of the acquisition of LifeWorks. TELUS also added that the Competition Bureau of Canada issued a no-action letter in respect of the plan of arrangement.
TELUS added that the applicable waiting period in relation to the arrangement under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired (the "HSR Approval"). This implies that the buyout is cleared to proceed in the United States and Canada.
In June 2022, TELUS
inked an agreement to acquire Canada-based LifeWorks to expand its presence in the lucrative digital health services market. Digital and telehealth services witnessed significant traction amid the pandemic and are now considered a lucrative opportunity in the healthcare market.
LifeWorks provides digital and in-person health care solutions. TELUS will be integrating LifeWorks’ employee and family assistance program (EFAP) and benefits administration capabilities into TELUS Health’s existing portfolio of digital health solutions.
TELUS expects the integration of LifeWorks solutions and the TELUS Health platform to provide a competitive edge as the integration represents “an unparalleled go-to-market comprehensive health and mental wellness offering.”
These abovementioned approvals are important in closing the proposed LifeWorks acquisition on or about the fourth quarter of 2022, as announced earlier. The company is awaiting regulatory approvals in the United Kingdom and Australia.
Based in Vancouver, Canada, TELUS is a leading telecom service provider in the country. The company offers wireless, wireline and Internet communications services for voice and data to businesses and consumers.
Recent Quarterly Performance of TELUS & Peers
announced impressive second-quarter 2022 results, with the top and the bottom line surpassing the Zacks Consensus Estimates. Adjusted earnings per share of C$0.32 per share (25 cents per share) in second-quarter 2022 compared with C$0.26 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 22 cents. Quarterly total operating revenues increased 7.1% year over year to C$4,401 million ($3,449 million), owing to high service revenue in TELUS technology solutions and TELUS International. The top line beat the consensus estimate of $3,439 million.
BCE Inc ( BCE Quick Quote BCE - Free Report) reported second-quarter 2022 adjusted earnings per share of C$0.87 (68 cents) compared with C$0.83 in the prior-year quarter. The Zacks Consensus Estimate for the same was pegged at 65 cents. Quarterly total operating revenues moved up 2.9% year over year to C$5,861 million ($4,593 million). The consensus estimate was pegged at $4,530 million. This was driven by a 3.8% rise in service revenues, which totaled C$5,233 million, reflecting solid wireless, residential Internet and media growth. BCE’s Product revenues declined 4.6% to C$628 million, owing to reduced mobile device transactions and business wireline data equipment sales. Telefonica, S.A. ( TEF Quick Quote TEF - Free Report) reported a second-quarter 2022 net income of €320 million, plunging 95.9% year over year. Further, basic earnings per share were €0.05 compared with €1.31 in the prior-year quarter. Telefonica’s quarterly total revenues increased 0.8% year over year to €10,040 million. However, organic revenues (aggregating 50% of Virgin Media O2 joint venture results) grew 5.2% year over year to €11,519 million. Shenandoah Telecommunications ( SHEN Quick Quote SHEN - Free Report) reported a loss of 6 cents per share in the second quarter of 2022 compared with earnings of $1.06 reported in the prior-year quarter. Shenandoah’s quarterly revenues grew 8.8% year over year to $66 million. The company witnessed increases of 139% and 4.3% for Glo Fiber and incumbent cable data RGUs, respectively.