Kirkland & Ellis Advises Blackstone on CDN$7 Billion Investment in Rogers Communications Subsidiary.
Kirkland & Ellis LLP acted as legal counsel to Blackstone in a high-profile transaction involving a CDN$7 billion equity investment in a new subsidiary of Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI). The deal marks a significant move in the Canadian telecom sector and brings together a consortium of prominent institutional investors.
The investor group led by Blackstone, includes Canada Pension Plan Investment Board (CPP Investments), Caisse de dépôt et placement du Québec, Public Sector Pension Investment Board (PSP Investments), and British Columbia Investment Management Corporation (BCI).
Together, they will hold a non-controlling interest in a subsidiary that will own a portion of Rogers’ wireless backhaul transport infrastructure located in Ontario and Alberta.
While the investors gain exposure to critical network assets, Rogers will continue to manage all operations and maintain full control over the infrastructure. The subsidiary will remain fully consolidated in Rogers’ financial reporting. Closing is expected in Q2 2025, subject to customary approvals.
According to Rogers CEO Tony Staffieri, the transaction is part of a broader effort to streamline the company’s balance sheet:
"“This strategic partnership demonstrates the confidence investors have in Rogers and in our world-class assets. With this significant investment, we are executing on our commitment to de-lever our balance sheet.”
The company plans to use the proceeds to pay down existing borrowings. As noted by CFO Glenn Brandt, Rogers will have issued $9 billion in equity-valued capital since the start of the year, which should contribute to a notable reduction in overall leverage.
The Kirkland & Ellis team advising Blackstone comprised corporate partners John Pitts, Brittany Sakowitz, and Patrick Moneypenny; Lucas Spivey and Jordan Roberts on debt finance matters; and Bill Dong and David Gilbert providing tax counsel.
Rogers Communications Inc. is a leading Canadian telecommunications and media company headquartered in Toronto. Founded in 1960, Rogers provides wireless, internet, cable TV, and home phone services to millions of customers across the country. It is Canada's largest wireless provider and a major player in broadband and media, with ownership of the Toronto Blue Jays, Sportsnet, and a wide portfolio of television and radio assets. Following its 2023 acquisition of Shaw Communications, Rogers significantly expanded its national reach and network capabilities, reinforcing its role as a key force in connecting Canadians coast to coast.
Kirkland & Ellis is a leading global law firm known for its excellence in M&A, corporate law, litigation, intellectual property, and private equity. With offices in key financial centers worldwide, the firm advises clients across a broad range of industries. Recognized for its work on high-stakes transactions and disputes, Kirkland delivers innovative legal strategies backed by deep industry knowledge. Its focus on complex deals and cutting-edge solutions positions it as a trusted advisor in the global legal market.
More Articles from Lawyer Monthly
