Blackstone has made a C$7 billion ($5.03 billion) bid for a minority stake in the cell phone infrastructure business of Canadian communications and media company Rogers Communications.
In its third quarter 2024 report, Rogers announced a transaction with a “leading global financial investor” that the company said would “materially reduce leverage with innovative C$7 billion structured equity financing.” However, Rogers did not name the company in the report. Multiple news outlets have since confirmed it is Blackstone.
As noted in its latest earnings report, Rogers has added 1.9 million mobile phone and Internet net additions during the past 11 quarters. The company’s wireless service revenue was up 2 percent and its adjusted EBITDA was up 5 percent in third quarter 2024, with its margin up 220 basis points to 66 percent.
The proceeds of the sale will be used to pay down debt and further strengthen Rogers’ balance sheet, according to the company.
Completion of the sale is subject to finalizing definitive agreements, and it is expected to close in fourth quarter 2024.