In a bold move that underscores the continued expansion of private equity into the telecommunications sector, Blackstone, the global investment giant, is set to inject a substantial $7 billion Canadian dollars (approximately $4.9 billion USD) into Rogers Communications. The deal, which was unveiled on Friday, sees Blackstone taking a minority stake in a newly created subsidiary of the Canadian communications company, advised by the renowned law firm Kirkland & Ellis LLP.
Blackstone’s Role and the Deal Breakdown
Under the terms of the acquisition, Blackstone will acquire a 49.9% equity interest in the new Rogers subsidiary, which will own a portion of Rogers’ wireless network. Despite this significant investment, Rogers will retain the majority control with a 50.1% equity interest and an 80% voting power within the subsidiary. This strategic collaboration marks a pivotal moment in Rogers’ ongoing efforts to strengthen its financial foundation.
“This deal speaks volumes about the confidence investors have in Rogers and the caliber of our assets,” said Tony Staffieri, President and CEO of Rogers. “It’s a clear demonstration of our commitment to reducing debt and ensuring long-term financial stability.”
