May 08, 2017
By Michael Kramer
The Ontario government is selling off – its expected final offering of shares in Hydro One – and says that could raise more than $3 billion for the province.
The government and Hydro One say they have entered into an agreement with a syndicate of underwriters for the offering – of some 120 million common shares.
Each stock will be sold at $23.25 for total gross proceeds of $2.79 billion.
And the province has a 30-day option to sell an additional 12 million common shares at the same price – which would raise gross proceeds to about $3.07 billion.
After the offering, the province will continue to hold some 296.8 million common shares – representing about 49.9 per cent of the company – but that could drop to 47.8 per cent if the over-allotment option is exercised in full.
By law, the Ontario government is prohibited from reducing its ownership below 40 per cent.