Rogers Secures CDN$7 Billion Equity Investment
Deal News | Apr 04, 2025 | CDPQ
Rogers Communications Inc. has announced a definitive agreement for a CDN$7 billion equity investment from funds managed by Blackstone, involving key Canadian institutional investors such as CPP Investments, CDPQ, and PSP Investments. Through this strategic partnership, Blackstone will acquire a non-controlling interest in a new Canadian subsidiary of Rogers that will own a minor part of its wireless network. Despite Blackstone holding a 49.9% equity interest, Rogers retains full operational control and plans to leverage the proceeds to repay debt and strengthen its investment-grade balance sheet. Rogers aims to reduce its leverage by nearly one turn through this arrangement which exemplifies investor confidence. The transaction, expected to close by the second quarter of 2025, involves Blackstone having a voting interest of 20% with the subsidiary generating annual distributions of up to CDN$0.4 billion for them. Notably, Rogers has the right to purchase Blackstone’s interest between the eighth and twelfth years post-closing. Furthermore, Rogers plans to amend bond indentures and address rating agency standards in how the transaction is reported financially.
Sectors
- Telecommunications
- Private Equity & Investment Management
Geography
- Canada – Rogers is a Canadian telecommunications company, and the investment involves multiple Canadian institutional investors.
Industry
- Telecommunications – Rogers Communications operates in the telecommunications sector and the deal involves their wireless network.
- Private Equity & Investment Management – The transaction is led by Blackstone, involving significant dealings from institutional investors like CPP Investments and CDPQ.
Financials
- CDN$7 billion – The equity investment value from Blackstone and other investors into Rogers.
- CDN$0.4 billion – Expected annual distribution to Blackstone over the first five years post-closing.
- 9 billion – Aggregate of equity-valued capital issued by Rogers, reducing leverage by almost 1 turn.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Rogers Communications Inc. | Target Company | Company | A major Canadian telecommunications and media company. |
| Blackstone | Investor | Company | An American private equity firm leading the investment group. |
| Canada Pension Plan Investment Board (CPP Investments) | Investor | Company | A Canadian institutional investor participating in the transaction. |
| Caisse de dépôt et placement du Québec (CDPQ) | Investor | Company | A Canadian institutional investor participating in the transaction. |
| Public Sector Pension Investment Board (PSP Investments) | Investor | Company | A Canadian institutional investor participating in the transaction. |
| British Columbia Investment Management Corporation | Investor | Company | A Canadian institutional investor participating in the transaction. |
| Tony Staffieri | President and CEO of Rogers | Person | Highlighted in the statement about investor confidence in Rogers. |
| Glenn Brandt | Chief Financial Officer of Rogers | Person | Commented on the transaction's impact on Rogers' balance sheet. |