2 weeks Ago By Dean Daley
Near the end of October 2024, it was revealed that Blackstone was the mystery investor bidding $7 billion for a minority stake in Rogers. The bid has now been confirmed , and Rogers has sold a stake to funds managed by Blackstone in a $7 billion equity deal backed by four Canadian pensions. According to the agreement’s terms, Blackstone will acquire a non-controlling interest in Rogers, and the telecom will continue to keep full operational control of its network.
Following the sale, Blackstone will hold a 49.9 per cent equity interest, with a 20 per cent voting interest, and Rogers will have a 50.1 per cent equity interest with 80 per cent voting interest.
The report indicates that Blackstone leads an investor group that includes the Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, the Public Sector Pension Investment Board and British Columbia Investment Management Corp. Rogers intends to use the net proceeds from the transaction to repay its debts from its acquisition of Shaw Communications. “This transaction will strengthen the company’s investment grade balance sheet by reducing our borrowings and unlocking the unrecognized value of critical assets,” said Glenn Brandt, Chief Financial Officer, in a press release.
“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 1 turn.” The transaction is expected to close in the second quarter of 2025. Source: Rogers.
