Blackstone Leads CAD$7B Investment in Rogers’ Subsidiary
Blackstone, in partnership with a consortium of prominent Canadian institutional investors, has committed CAD$7 billion to a new subsidiary of Rogers Communications. This subsidiary will oversee a portion of Rogers’ wireless network. Under the agreement, Blackstone will acquire a 49.9% equity stake, carrying a 20% voting interest, while Rogers retains a 50.1% equity stake and an 80% voting interest, ensuring it maintains full operational control.
The investor group features Canada Pension Plan Investment Board (CPP Investments), Caisse de dépôt et placement du Québec, the Public Sector Pension Investment Board (PSP Investments) and British Columbia Investment Management Corporation.
The transaction is slated to close in the second quarter of 2025 and is poised to bolster Rogers’ financial health by reducing its debt leverage ratio by 0.7x. Following the closing, the subsidiary is expected to distribute approximately CAD$0.4 billion annually to Blackstone for the first five years. Rogers anticipates an average capital cost of 7% per annum throughout the purchase period.
A notable aspect of the deal grants Rogers the option to repurchase Blackstone’s stake between the eighth and twelfth anniversaries of the closing date.
Rogers’ CFO, Glenn Brandt, emphasized the strategic significance of the move, stating, “With this transaction, Rogers will have issued an aggregate $9 billion of equity-valued capital since year-end, which is expected to reduce leverage by almost one turn.”