In a significant shakeup of the Canadian telecommunications sector, Blackstone was announced on April 14th as the head of a consortium. The deal involves them taking a minority stake in part of Rogers Communications’ wireless network infrastructure. The agreement is valued at $7 billion. It further illustrates Blackstone’s strategy of investing in the critical telecommunications assets that serve as the backbone of Canada’s network infrastructure.
Per the deal’s terms, Blackstone will obtain a 49.9 percent stake in a newly created subsidiary. This new subsidiary would own all the infrastructure that makes data transmission possible. It will interconnect Rogers’ cell sites to its central network. The agreement’s structure helped Rogers to maintain exclusive operational control of its national wireless network. This transparent structure ensures that the acquirer maintains the company’s controlling stake for the entirety of the process.
Blackstone’s consortium has some big name investors in its corner. These are the Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, the Public Sector Pension Investment Board and the British Columbia Investment Management Corp. This varied group further illustrates both the importance of the investment and the strong, shared belief in the telecommunications industry’s future.
Blackstone intends to sell its equity interest in the subsidiary back to Rogers. Since this transaction will likely occur from 2033 to 2037, it already affects today’s students. This new timeline marks a real commitment to the kind of long-term partnership that makes real change. It furthers Rogers’ strategic objectives and provides Blackstone with the opportunity to achieve returns on its investment.
We currently expect it to close in the second quarter of 2025. With this timeline as a guide, each company is committed to working together effectively to provide improved service to Canadians from coast to coast. It should be made clear that the settlement does not affect Rogers’ impacted cell towers and spectrum holdings. This important distinction intentionally and explicitly removes operational control from infrastructure ownership.
This transaction is an important point for Rogers as it charts its path forward realizing the promise of its growth in a challenging and competitive telecommunications sector. Rogers is already collaborating with Blackstone and its consortium members. This collaboration will continue to improve its infrastructure capabilities and enable Rogers to stay in hands of majority control over its wireless operations.
