Rogers Buys BCE’s Stake in Maple Leaf Sports for $3.5 Billion

(Bloomberg) -- Rogers Communications Inc. is buying BCE Inc.’s 37.5% stake in Maple Leaf Sports & Entertainment Ltd. for C$4.7 billion ($3.5 billion), giving the telecommunications giant a majority stake in the sports company whose most valuable assets include the Toronto Maple Leafs hockey club and the Toronto Raptors.

Most Read from Bloomberg

• California’s Anti-Speeding Bill Can Be a Traffic Safety Breakthrough

• Pipe Fire Near Houston Forces Residents to Evacuate

• To Build a Happier City, Design for Density

• London Mayor Plans to Pedestrianize Busy Oxford Street

• An Artist Reimagines the Spaces of Childhood, With Thorny Results

Toronto-based Rogers said in a statement that financing for the deal will include private investors and it will not affect its debt leverage. BCE plans to use the proceeds of this sale towards reducing its debt levels. The transaction is expected to close in mid-2025.

“Today’s announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers,” BCE Chief Executive Officer Mirko Bibic said in the statement. Prior to this deal, Rogers and BCE, parent of Bell Canada, evenly divided a 75% stake, while Canadian businessman Larry Tanenbaum and the Ontario Municipal Employees Retirement System own the remainder.

Bell Media has secured access to content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for the next 20 years through a long-term agreement with Rogers, according to the statement.

Most Read from Bloomberg Businessweek

• The Man Who Made Nike Uncool

• How an Unknown Chinese Phonemaker Took Over Africa

• Who Loses in Trump’s Endless Trade War? Not Just China

• Business Schools Are Undergoing Unusual Change

• To Catch Up in EVs, Detroit Needs to Invite China In

©2024 Bloomberg L.P.