TELUS Corporation
TSX : T
NYSE : TU

TELUS Corporation

September 29, 2014 08:45 ET

TELUS Completes 2014 Normal Course Issuer Bid Program - Announcing Approval to Advance 2015 Program to Purchase Up to $500 Million in TELUS Common Shares Over Next 12 Months

Purchased 13 million TELUS shares for $500 million in 2014

$10.4 billion returned to shareholders since 2004, including $3.0 billion since 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 29, 2014) - TELUS Corporation ("TELUS") (TSX:T)(NYSE:TU) has completed its 2014 Normal Course Issuer Bid (NCIB) program, and received approval from the Toronto Stock Exchange (TSX) for a new Normal Course Issuer Program ('2015 NCIB") to purchase and cancel up to an additional number of shares valued up to $500 million.

"TELUS has completed its 2014 share purchase program, returning $500 million to our shareholders and building upon the $1 billion NCIB program completed in 2013," said Darren Entwistle, TELUS Executive Chair. "When combining the two share purchase programs, TELUS has purchased 44.2 million shares for an average purchase price of $33.95 - a 12 per cent discount to the closing share price on September 26, 2014."

"Consistent with our goals to provide sustained and superior investment returns, TELUS has returned $3.0 billion to shareholders since the beginning of 2013, including $1.5 billion in dividends paid and $1.5 billion in share purchases. Since 2004, TELUS has returned $10.4 billion in total cash to shareholders, representing $17 per share."

"Today, we are also announcing we have received regulatory approval to advance our 2015 NCIB to purchase and cancel up to 16 million TELUS common shares valued at up to $500 million. This represents an additional 2.6 per cent of outstanding TELUS common shares. Notably, TELUS' asset quality and diversity, coupled with our strong financial execution and balance sheet puts our company in a unique position whereby we are returning significant capital to our shareholders through our multi-year share purchase and dividend growth programs, whilst simultaneously investing in our future through broadband technology expansion and wireless spectrum auctions that support ongoing sustainable business growth. Owing to our team's relentless focus on putting customers first and our continued diligence in respect of operational efficiency and effectiveness, TELUS is well positioned to successfully complete our shareholder friendly initiatives through 2016. Indeed, TELUS is intent on concluding the remaining $500 million tranche of our minimum, multi-year share purchase program of $2.5 billion before the end of 2016." Mr. Entwistle added.

TELUS completed its 2014 NCIB program with the purchase of 13,004,471 shares or 2.1 per cent of its outstanding shares for approximately $500 million. The 2015 NCIB program approved by the TSX will allow TELUS to purchase and cancel up to 16 million TELUS common shares valued at up to $500 million over a 12-month period, commencing October 1, 2014. This represents a three-month acceleration of the timeframe for the 2015 NCIB to provide TELUS the flexibility to purchase TELUS common shares depending on market conditions without interruption. TELUS intends to complete the last $500 million component of its multi-year share purchase program before the end of 2016.

Cancelling 44.2 million shares will save TELUS approximately $67 million in annual dividend payments, and has reduced the number of TELUS shares outstanding by 6.8 per cent since the program began in 2013.

The 2015 NCIB program will enable TELUS to purchase up to 16 million TELUS common shares for an aggregate purchase price of up to $500 million from October 1, 2014 to September 30, 2015 through the facilities of the TSX, the New York Stock Exchange (NYSE) and alternative trading platforms or otherwise as may be permitted by applicable securities laws and regulations. All shares purchased will be cancelled.

This represents approximately 2.57 per cent of outstanding TELUS common shares as at December 4, 2013, and will be purchased only when and if the company considers it advisable. Pursuant to TSX rules, the maximum number of common shares that may be purchased during the same trading day on the TSX is 421,589 common shares (being 25% of the average daily trading volume of TELUS common shares for the 6 months preceding the date of the 2014 NCIB notice to the TSX, which was equal to 1,686,357 common shares), subject to certain exceptions for block purchases. As of December 4, 2013, TELUS had 623,419,384 common shares issued and outstanding.

TELUS will pay the market price at the time of acquisition for any common shares purchased under the NCIB through the TSX, the NYSE or alternative trading platforms. TELUS may also purchase common shares privately from time to time after obtaining exemption orders from applicable securities regulatory authorities. Any such private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price as provided in the exemption order.

TELUS is also planning to enter into an automatic share purchase plan (ASPP) with a broker for the purpose of permitting TELUS to purchase shares under its NCIB during internal blackout periods when TELUS would not be permitted to trade in its shares, including regularly scheduled quarterly blackout periods. Such purchases would be pursued at the sole discretion of the broker based on parameters established by TELUS prior to any blackout period in accordance with TSX rules, applicable securities laws and the terms of the agreement between the broker and TELUS. The ASPP may be implemented as early as October 1, 2014, and from time to time thereafter. All other purchases under the NCIB will be at the discretion of the company.

TELUS' Board of Directors believes that such purchases are in the best interest of TELUS and that such purchases constitute an attractive investment opportunity and desirable use of TELUS' funds that should enhance the value of the remaining shares.

Supporting TELUS' goals of returning capital to shareholders, in 2013, the company extended its semi-annual dividend growth program to 2016, normally announced in May and November, and is targeting to increase the dividend in the range of circa 10 per cent annually. In addition, TELUS currently intends to renew its NCIB share purchase program for 2016 in order to permit purchases of up to $500 million following the completion of its 2015 NCIB program. Future dividends and NCIBs will be dependent on earnings and free cash flow, subject to Board assessment and determination, and obtaining regulatory (including TSX) approvals for future NCIBs.

Forward-Looking Statements

This media release contains statements about future events at TELUS that are forward-looking. By their nature, forward-looking statements require the company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future events to differ materially from that expressed in the forward-looking statements. Specifically, there can be no assurance that the Company will maintain its dividend growth program through to 2016 or as to how many shares, if any, will ultimately be acquired by TELUS under any NCIB. Accordingly, this news release is subject to the disclaimer and qualified by the assumptions, qualifications and risk factors referred to in the first and second quarter Management's discussion and analysis, in the 2013 annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov), including factors such as regulatory and government decisions, competitive environment, reasonable economic performance in Canada, our earnings and free cash flow and capital expenditure and spectrum auction requirements, all of which, in addition to the factors outlined in this news release, may affect the Company's ability to sustain the dividend growth program through 2016, and the ability to sustain and complete multi-year share purchase programs through 2016. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time, at its sole discretion, its current practice of updating annual targets and guidance.

About TELUS

TELUS (TSX:T)(NYSE:TU) is Canada's fastest-growing national telecommunications company, with $11.7 billion of annual revenue and 13.4 million customer connections, including 7.9 million wireless subscribers, 3.2 million wireline network access lines, 1.4 million Internet subscribers and 865,000 TELUS TV customers. TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video, and is Canada's largest healthcare IT provider.

For more information about TELUS, please visit www.telus.com.

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