Rogers Communications Inc. announced it has entered into a definitive agreement for a C$7 billion equity investment with funds managed by Blackstone, backed by leading Canadian institutional investors. This investment involves Blackstone acquiring a non-controlling interest in a new Canadian subsidiary of Rogers that will own a minor part of Rogers' wireless network.
Rogers will maintain full operational control of its network, and the financial results of the subsidiary will be included in its consolidated financial statements. The investor group includes 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 net proceeds from this transaction are intended to repay debt, with Glenn Brandt, Chief Financial Officer, stating that it will strengthen the company’s investment-grade balance sheet and reduce borrowings. This investment is expected to reduce Rogers' debt leverage ratio by 0.7x and contribute to an aggregate C$9 billion of equity-valued capital since year-end, reducing leverage by almost 1 turn.
Blackstone will hold a 49.9% equity interest (with a 20% voting interest) in the subsidiary, while Rogers will retain a 50.1% equity interest (with an 80% voting interest). The transaction is expected to close in the second quarter of 2025, subject to closing conditions.
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