08:00 AM EDT, 04/04/2025 (MT Newswires) -- Rogers Communications (RCI-A.TO, RCI-B.TO) on Friday said it Blackstone agrees to invest $7 billion in the company.

Blackstone will acquire a stake in a new Canadian subsidiary of Rogers that will own a minor part of Rogers wireless network. The investor group, led by Blackstone, includes Canada Pension Plan Investment Board, Caisse de depot et placement du Quebec, the Public Sector Pension Investment Board and British Columbia Investment Management Corporation.

"This transaction will strengthen the company's investment grade balance sheet by reducing our borrowings and unlocking the unrecognized value of critical assets," said Glenn Brandt, chief financial officer. "With this transaction, Rogers will have issued an aggregate $9 billion of equity-valued capital since year-end, which is expected to reduce leverage by almost 1 turn."

Blackstone will hold a 49.9% equity interest (with a 20% voting interest) in the subsidiary and Rogers will hold a 50.1% equity interest (with an 80% voting interest), with an option for Rogers to purchase Blackstone's interest within 12 years of closing.

The subsidiary is expected to distribute up to $0.4 billion annually to Blackstone in the first five years. Rogers average capital cost through to the end of the period for purchase is expected to be 7% annually.

The transaction is expected to close in the second quarter.

Separately, Rogers said it has begun consent solicitations to amend the indentures governing some of its U.S. dollar-denominated and Canadian dollar-denominated notes, including notes originally issued by Shaw Communications. The solicitations are being made in connection with the subsidiary equity investment.