Rogers Communications agreed an equity deal worth CAD7 billion ($4.9 billion) to sell a minor stake in its wireless network to private equity firm Blackstone.

Blackstone will own a non-controlling interest in a new Rogers Communications’ subsidiary which is set to hold some of its wireless backhaul transport infrastructure.

The operator will retain full operational control and the deal does not involve its cell towers or spectrum holdings.

Blackstone will hold a 49.9 per cent equity interest in the new subsidiary while Rogers Communications will have 50.1 per cent.

The subsidiary is expected to distribute up to approximately CAD400 million annually to Blackstone in the first five years after it closes.

“With this significant investment, we are executing on our commitment to de-lever our balance sheet,” stated Rogers Communications president and CEO Tony Staffieri.

The operator plans to use the proceeds from the deal to repay debt. The transaction is expected to close in the second quarter of 2025 once it meets required closing conditions.