Rogers enters definitive agreement for C$7 billion equity investment
Torys is acting as counsel to Rogers Communications with a team led by Rima Ramchandani and that includes Cameron Koziskie, Justin Crawford, Brett Saulnier and Rivannah Brown (corporate), Adam Armstrong and Angela Jiao (technology), Craig Maurice (tax), Dany Assaf (competition/foreign investment), Linda Plumpton and Chris Hunter (litigation and dispute resolution) and David Bish (corporate restructuring and advisory).
On April 4, 2025, Rogers Communications Inc. (Rogers) announced that it entered into a definitive agreement with funds managed by Blackstone, backed by leading Canadian institutional investors, for a C$7 billion equity investment.
The investor group led by Blackstone, includes Canada Pension Plan Investment Board (“CPP Investments”), Caisse de dépôt et placement du Québec (“CDPQ”), the Public Sector Pension Investment Board (“PSP Investments”) and British Columbia Investment Management Corporation (“BCI”).
Under the terms of the transaction, Blackstone will acquire 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 will include the financial results of the subsidiary in its consolidated financial statements.
The investment in a portion of Rogers wireless backhaul transport infrastructure will be reported as equity in Rogers consolidated financial statements, and is expected to be considered an equity investment by Moody’s Investors Services, Inc., S&P Global Ratings, a division of S&P Global Inc., and DBRS Limited.
Following closing of the transaction, Blackstone will hold a 49.9% equity interest (with a 20% voting interest) in the subsidiary, with Rogers holding a 50.1% equity interest (with an 80% voting interest). At any time between the eighth and twelfth anniversaries of the transaction’s closing, Rogers will have the right to purchase Blackstone’s interest in the subsidiary.
Closing of the transaction is expected to close in the second quarter of 2025, subject to satisfaction or waiver of all closing conditions. Separately, Rogers intends to seek consent from the holders of its outstanding senior notes for certain proposed clarifying amendments to its bond indentures.
Rogers intends to use the net proceeds from the transaction to repay debt.
Further information can be found on Globe Newswire’s website.
Rogers is Canada’s leading communications and entertainment company and its shares are publicly traded on the Toronto Stock Exchange and on the New York Stock Exchange.