Blackstone Finalizes $5.07 Billion Investment in Rogers Communications Subsidiary
Blackstone Inc. has completed its previously announced CAD$7-billion (US$5.07 billion) equity investment in a newly formed subsidiary of Rogers Communications Inc. The subsidiary holds a portion of Rogers’ wireless backhaul transport infrastructure, which is crucial for transmitting data between cellular towers and core network facilities. This transaction involved the sale of a non-controlling interest and was executed through funds managed by Blackstone Credit & Insurance (BXCI).
Several major Canadian institutional investors participated in the deal, including Canada Pension Plan Investment Board (CPP Investments), Caisse de dépôt et placement du Québec (CDPQ), Public Sector Pension Investment Board (PSP Investments), British Columbia Investment Management Corporation (BCI), and the Investment Management Corporation of Ontario (IMCO). The transaction structure allows Rogers to retain operational control of the assets while unlocking capital for other strategic priorities.
Rogers has indicated that proceeds from the deal will be used to reduce debt and invest in network expansion, particularly following its acquisition of Shaw Communications in 2023. Robert Horn, global head of infrastructure and asset-based credit at Blackstone, stated that the investment aligns with Rogers’ balance sheet and growth objectives. “This is another example of Blackstone providing flexible and efficient capital solutions for the world’s leading corporations, while delivering what we believe is a highly differentiated opportunity for our investors,” Horn said.
Mark Rutledge, US head of infrastructure services at BXCI, highlighted the importance of wireless backhaul in supporting increased mobile data traffic. “We are excited to support Rogers in its next phase of investment and growth,” Rutledge said. BXCI manages over $90 billion in assets and employs more than 70 professionals focused on infrastructure and asset-based credit strategies, having been active in sectors including telecommunications, transportation, and energy infrastructure.
This investment reflects a growing trend of institutional capital flowing into digital infrastructure, viewed by investors as a long-term, cash-generating asset class. For Rogers, the transaction provides additional flexibility as it continues to compete in Canada’s evolving telecommunications landscape.
