QUEEN’S PARK – Ontario is continuing forward with the sale of Hydro One. In a media release from the Wynne Government, “Ontario is generating significant returns from broadening the ownership of Hydro One Limited, in order to help support the single largest investment in transit and transportation infrastructure in the province’s history – investing $130 billion over ten years and making 110,000 jobs possible each year.”
The Ontario Government states, “The Initial Public Offering (IPO) has now closed for Hydro One common shares. This initial stake in the company will begin trading today on the Toronto Stock Exchange (the “TSX”) under the symbol “H”. By proceeding in a careful, staged, and prudent manner over time, the government expects to realize $9 billion in proceeds, $4 billion of which will be invested in infrastructure and $5 billion to reduce debt.”
The Province has offered 81,100,000 common shares at $20.50 per share for total gross proceeds to the Province of approximately $1.66 billion, in addition to an option granted to the underwriters, to purchase up to an additional 8,150,000 common shares, which would result in total gross proceeds of approximately $1.8 billion. Approximately 40 per cent of the offering has been allocated to individual retail investors, helping ensure that Ontarians from across the province can participate in the broadened ownership of Hydro One.
The government is committed to invest net revenue gains from the Province’s sale of Hydro One common shares into the Trillium Trust which, in turn, will be used to fund infrastructure projects that will create jobs and strengthen the economy. These proceeds will fund priority projects such as GO Transit Regional Express Rail, Light Rail Transit projects in communities across Ontario, and natural gas network expansion in rural and northern communities.
Maximizing the value of Hydro One is part of the government’s plan to build Ontario up. The four-part plan includes investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario’s history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.
Opponents of the deal point to the long-term losses that could come as a result of this sale.
- The Ontario government will remain the largest shareholder of Hydro One after the IPO, and by law no other shareholder or group of shareholders is permitted to own more than 10 per cent.
- A report and news release detailing the Province’s ownership of Hydro One after giving effect to the IPO will be filed as required with the Ontario Securities Commission and other Canadian securities regulators.
- Research shows that every $100 million of public infrastructure investment in Ontario boosts GDP by $114 million, particularly in construction and manufacturing sectors.
- Ontario’s infrastructure investments are making 110,000 jobs possible per year with projects such as roads, bridges, transit systems, schools and hospitals across the province.