Telus Corp. has approved a two-for-one split of its common stock, a move that will double the number of shares outstanding but cut each one's price in half.
Telus says the split, which is subject to approvals from the Toronto and New York stock exchanges, will enhance trading liquidity and improve the affordability of shares for retail investors.
Its shares closed Wednesday at $69.04 at the Toronto Stock Exchange. If the split had been in effect then, there would have been twice as many shares valued at $34.52 – assuming no other changes.
The Vancouver-based telecom says when the split is completed, there will be about 653.6 million shares outstanding.
On April 16, Telus shareholders will receive one additional share for each share owned on the record date of April 15, 2013. After the split-adjusted stock is expected to start trading on April 17.
Telus now has had just one class of common shares since Feb. 4, after a lengthy battled with U.S. hedge fund Mason Capital Management. Mason wanted the voting shares to be given a higher value when the two classes were consolidated.
At one time, the hedge fund was the largest shareholder in Telus, but has since reduced its stake.