A further 72.4 million shares of Hydro One will be floated on the Toronto Stock Exchange on Wednesday in a move that could raise almost $2 billion for the province.
The shares in this secondary offering are being sold at $23.65 a piece, which is 15.4% higher than the offering price in the November Initial Public Offering, for total gross proceeds of about $1.71 billion.
The net proceeds of the sale are to go into the Trillium Trust to invest in transit, transportation and other infrastructure.
With this transaction, the Province remains on track to generate approximately $9 billion in gross proceeds and other revenue benefits.
The Ontario government will remain the largest shareholder of Hydro One after the secondary share offering.
“This transaction represents yet another important milestone as the Province continues to fulfil its commitment to broaden the ownership of Hydro One. By realizing the value of this public asset, we will be able to build new roads, bridges, rapid transit, schools and hospitals in communities across Ontario, while remaining the single largest shareholder.”
Bob Chiarelli, Minister of Energy
“We are taking another step today to help maximize the value of our assets by investing in the infrastructure we need for today and tomorrow. The Province will proceed with future offerings as planned, in a staged and prudent manner that will, over time, bring government ownership of Hydro One to 40 per cent.”
Charles Sousa, Minister of Finance