he telecom is expected to pay the Blackstone consortium approximately $400-million annually for the next five years.Sean Kilpatrick/The Canadian Press
Rogers Communications Inc. RCI-B-T has closed its deal to sell a minority stake in its wireless infrastructure for $7-billion to a consortium led by New York-based Blackstone Inc. that includes four of Canada’s largest pension plans.
Rogers is selling a portion of its backhaul, a part of its wireless transport infrastructure, to pay down debt. The financing is expected to pave the way for further infrastructure sales at Canadian telecom platforms.
The Blackstone consortium will hold a 20-per-cent voting interest in the new business, while Rogers will own 50.1 per cent of the equity and an 80-per-cent voting interest. Rogers will include the financial results of the subsidiary in its consolidated financial statements.
CRTC upholds decision allowing large telecoms to resell internet services on each other’s networks
Opinion: Blackstone CEO must disavow Trump to buy Canadian wireless infrastructure
The investor group includes Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, the Public Sector Pension Investment Board, British Columbia Investment Management Corporation and the Investment Management Corporation of Ontario.
Rogers has the right to repurchase the consortium’s interest at any time between the eighth and 12th anniversaries of the deal’s closing. The telecom is expected to pay the Blackstone consortium approximately $400-million annually for the next five years.
“With this significant investment, we are unlocking the unrecognized value of critical assets and executing on our commitment to de-lever our balance sheet,” said Tony Staffieri, Rogers president and chief executive officer, in a press release Friday afternoon.
With files from Andrew Willis