Blackstone completes $5.1bn equity investment in Canada’s Rogers Communications

An investor group led by American private equity giant Blackstone has completed an equity investment of around C$7bn (US$5.1bn) in Canada’s Rogers Communications.

Tony Staffieri

Through the deal, which was initially announced in April, Blackstone has acquired a non-controlling stake in a newly established Rogers Communications subsidiary that holds assets related to its internet and wireless business.

Rogers said it would retain “full operational control” of its wireless network following the transaction.

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

With the completion of the deal, Blackstone now holds a 49.9% equity interest in the subsidiary (with a 20% voting interest), while Rogers Communications holds 51.1% (with an 80% voting interest). Per the terms of the transaction, Rogers has the right to repurchase Blackstone’s stake after eight years.

Rogers Communications, which is the parent company of networks including Citytv, HGTV and Food Network, said it would use the funds to reduce its debt load, which stood at C$42.21bn at the end of the first quarter. The company has been looking to reduce its overall debt following its acquisition of fellow telecommunications company Shaw Media for C$26bn in 2023.

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