Blackstone secures a C$7 billion investment in a new Rogers Communications subsidiary, acquiring a 49.9% equity interest in a move designed to enhance infrastructure capabilities amid increasing demand in the Canadian telecommunications market.

Target Information

An investor consortium comprising the Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, Public Sector Pension Investment Board, and British Columbia Investment Management Corp. is backing Blackstone's bid to acquire a non-controlling interest in a new subsidiary of Rogers Communications Inc. valued at C$7 billion. This subsidiary will have ownership of a minor part of Rogers' wireless network, allowing Rogers to maintain operational control while incorporating the subsidiary's financial outcomes into its consolidated financial statements.

Under the terms of the acquisition, Blackstone will secure a 49.9% equity interest, accompanied by a 20% voting interest, within the new subsidiary, whereas Rogers will retain a 50.1% equity interest with an 80% voting stake. Notably, Rogers holds the option, between the eighth and twelfth anniversaries post-closing, to acquire Blackstone's interest in the subsidiary.

Industry Overview

The telecommunications industry in Canada is critical as it plays a fundamental role in driving economic growth and facilitating connectivity across the country. Rogers Communications, a dominant player in this landscape, influences various sectors through its extensiv