Blackstone Inc. is the mystery investor bidding $7-billion for a minority stake in Rogers Communications Inc.’s cell phone infrastructure business, after the Wall Street asset manager won anon-binding agreement to sell a portion of its wireless backhaul network
Blackstone and Rogers are using a financing structure copied from a series of deals done by asset manager Apollo Global Management Inc. The transactions create standalone businesses out of internal operations which generate reliable cash. When Rogers announced its plans earlier this month, chief executive officer Tony Staffieri said: “This structured financing transaction is the first of its kind in Canada.
Blackstone offered the best terms and is negotiating the final details of an agreement with Rogers. However, the sources said Apollo is still attempting to elbow aside its rival by sweetening its offer. Earlier this month, Rogers said it expects to close the backhaul sale by the end of the year. The transaction does not require regulatory approval, the sources said.
Blackstone is one of the world’s largest asset managers, with more than a US$1-trillion in client assets under management. The company has committed approximately US$53-billion to infrastructure, including an investment in U.S. telecom platform Hotwire Communications, which runs fiber networks to homes.