Telus (T) announced it’s engaged TD and Jefferies as advisors in the monetization strategy of its health unit, which continues to grow the top-line while leaning out its cost structure.
The news, along with its insider buying PR earlier this week, are clearly aimed at easing investor concerns over leverage and dividend sustainability…
… so the setup to sell looks less opportunistic than its digital unit monetization in 2021. Despite that, private capital will line up at the right price - which should land well above where Telus currently trades.
With management looking for a ~$2B cheque…
We would bring in a partner that would easily, in this scenario, bring in $1-3 billion if that was the case.
… a deal could be within GTCR’s wheelhouse, given they just took dentalcorp private at $2.2B and helped fund Telus’ Workplace Options deal in May.
