Blackstone Completes CDN$7 Billion Equity Investment in Rogers Communications

NEW YORK – June 20, 2025 – Blackstone (NYSE: BX) today announced the successful closure of its previously announced CDN$7 billion equity investment in Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI). This landmark transaction sees funds managed by Blackstone Credit & Insurance (BXCI), in collaboration with leading Canadian institutional investors, acquire a significant non-controlling interest in a newly established subsidiary of Rogers. This subsidiary holds a crucial portion of Rogers' wireless backhaul transport infrastructure, a vital component of its telecommunications network.

This strategic partnership underscores Blackstone's continued focus on investing in critical infrastructure assets that generate stable, long-term cash flows. The wireless backhaul transport infrastructure is essential for the efficient operation of Rogers' extensive 5G and 4G networks, facilitating data transmission between cell towers and the core network. This investment provides Rogers with substantial capital, which can be strategically deployed to further enhance its network capabilities, accelerate 5G expansion, and potentially reduce debt, thereby strengthening its financial position.

The involvement of leading Canadian institutional investors alongside Blackstone highlights the attractiveness of this asset class within the Canadian market and signals strong domestic confidence in Rogers' long-term growth trajectory. This collaborative investment structure also aligns with Rogers' commitment to maintaining Canadian ownership and control over its core operations while leveraging external capital for strategic growth initiatives.

Market Context and Strategic Implications

The telecommunications sector, particularly wireless infrastructure, remains a highly attractive area for institutional investors due to its essential nature and predictable revenue streams. The demand for robust wireless connectivity continues to surge, driven by increasing data consumption, the proliferation of IoT devices, and the ongoing rollout of 5G technology. Investments in backhaul infrastructure are foundational to supporting this growth, ensuring reliable and high-speed data transmission.

For Rogers Communications, this CDN$7 billion injection provides significant financial flexibility. It allows the company to continue investing heavily in its network infrastructure, which is crucial for maintaining its competitive edge in the fiercely contested Canadian telecom market. Enhanced network capacity and speed are key differentiators that can attract and retain subscribers, especially as competition intensifies from rivals like Bell and Telus.

Furthermore, this transaction could serve as a template for other telecommunications companies looking to unlock value from their infrastructure assets without ceding full control. By partnering with institutional investors, companies can monetize non-core, yet critical, assets to fund strategic initiatives, improve balance sheets, or return capital to shareholders, all while retaining operational control.

Investment Insights for Shareholders

For existing shareholders of Blackstone (BX), this investment reinforces the firm's expertise in large-scale infrastructure deals and its ability to deploy significant capital into high-quality, income-generating assets. The long-term nature of this investment in essential infrastructure is expected to contribute to stable returns for Blackstone's credit and insurance funds.

For Rogers Communications (RCI.A, RCI.B) shareholders, the capital infusion is a positive development. It strengthens the company's financial foundation, potentially leading to accelerated network upgrades, improved service quality, and a stronger competitive position. While the investment is non-controlling, it provides a substantial capital boost without diluting existing equity significantly. Investors should monitor how Rogers utilizes this capital – whether for network expansion, debt reduction, or other strategic initiatives – as this will directly impact future profitability and shareholder value. This deal highlights the intrinsic value of Rogers' underlying infrastructure, which could be a positive signal for the company's valuation.

This transaction exemplifies a growing trend of private capital flowing into critical digital infrastructure, reflecting a long-term bullish outlook on the telecommunications sector's foundational role in the global economy.