Canada’s Telus Abruptly Drops $830 Million Offer for Australia’s Appen According to Reuters

© Reuters. FILE PHOTO: A sign for Telus Communications in Toronto, Ontario, Canada December 13, 2021. REUTERS / Carlos Osorio

(Reuters) – Canadian data analytics software maker Telus (NYSE: International) took and then abruptly withdrew its AU$1.2 billion ($830 million) acquisition approach. against Australian rival Appen Ltd, Appen said on Thursday.

“Telus has informed us that it is withdrawing its Designation Proposal. No reason has been given,” the Australian software seller said.

Telus did not immediately respond to a request for comment on the retraction of the proposal.

On Thursday, trading in Appen shares was halted after they rose more than 29% to AU$8.27, well below the indicated asking price of AU$9.50 a share, as investors The investment positions itself for a final purchase – including from another company – while still allowing for the possibility that the negotiations may fail.

“Appen has worked with Telus in good faith … to better understand the terms of the proposal and agree an appropriate security and stability agreement,” the Australian company said in its latest statement. mine.

Appen had signaled in its earlier statement that it would be partnering with Telus to solicit a higher offer.

An agreement that will help build the Canadian company’s offering at a time when corporate customers worldwide are turning to automating many services for a customer base that has moved online due to the COVID-19 pandemic- 19.

It will also give Appen shareholders an opportunity to offset investment losses since February when their celebrity client and Facebook (NASDAQ:) Meta Platforms owner revealed that their ad revenue was being lost. affected by stricter privacy controls installed on Apple Inc (NASDAQ:) computers and smartphones.

“While we see significant potential for synergies…

“We see potential for another suitor, especially a competitor to Telus.”

In a short trading update, Appen also said it expects first-half profit to be significantly lower than last year, although it does expect earnings to increase in the second half.

The company, which sells a range of automation software including programs that help companies like Facebook collate user data, earlier this year dismissed its prospects for the first time since going public – with The issue price was 50 cents in 2015.

($1 = AU$1.4096)

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