Blackstone has led a private equity consortium in a $5.1bn equity investment in a newly created subsidiary of Rogers Communications, marking one of the largest private capital transactions in Canadian telecoms this year.

The deal, initially announced in April, sees Blackstone and institutional partners take a 49.9% equity stake – representing 20% of voting rights – in the unit holding Rogers’ internet and wireless assets. Rogers retains a 51.1% ownership stake and 80% voting control. The Canadian telecoms giant has the option to repurchase Blackstone’s interest after eight years.

The Blackstone-led investor group includes the Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ), the Public Sector Pension Investment Board (PSP), British Columbia Investment Management Corporation (BCI), and the Investment Management Corporation of Ontario (IMCO).

Rogers will use proceeds from the transaction to reduce its C$42bn debt load, which grew substantially following its C$26bn acquisition of Shaw Media in 2023.

“This transaction demonstrates the confidence investors have in Rogers and our world-class assets,” said Tony Staffieri, CEO of Rogers Communications. “With this significant investment, we are unlocking the unrecognised value of critical assets and executing on our commitment to de-lever our balance sheet.”

Source: C21 Media

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