(RTTNews) - Rogers Communications (RCI) has entered into a definitive agreement with funds managed by Blackstone, backed by leading Canadian institutional investors, for a C$7 billion equity investment. Blackstone will acquire a non-controlling interest in a new Canadian subsidiary of Rogers that will own a minor part of Rogers wireless network. Rogers will maintain full operational control of its network.
Following the transaction, Blackstone will hold a 49.9% equity interest in the subsidiary and Rogers will hold a 50.1% equity interest in the subsidiary. At any time between the eighth and twelfth anniversaries of closing, Rogers will have the right to purchase Blackstones interest. The subsidiary is expected to distribute up to approximately C$0.4 billion annually to Blackstone in the first five years post-closing.
Separately, Rogers said it plans to seek consent from the holders of its outstanding senior notes for certain proposed clarifying amendments to bond indentures.
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