Hydro One Sale
CBJ – The Ontario provincial government has filed papers with regulators for an initial public offering of Hydro One Inc. in what’s expected to be Canada’s largest IPO in nearly two decades.
The amount and stake have not yet been disclosed to Canada’s securities regulator. The province said in April that it planned to sell about 15% of Ontario’s largest electricity transmission and distribution system in an IPO of as much as $2.25-billion.
Premier Kathleen Wynne said at the time that the province ultimately plans to sell up to 60% of Hydro One within four to five years to pay down debt and raise money for transit and infrastructure, however, no one entity will be permitted to own 10%, therefore leaving Ontarians holding the largest share at 40%.
With about 1.4 million customers and $23-billion of assets, Hydro One has been estimated by the province to have an equity valuation of $13.5-billion to $15-billion.
The initial sale excludes Hydro One’s Hydro One Brampton Networks unit, which is being sold to a group of municipally owned utilities that are merging as part of the government’s plan.
Bank of Nova Scotia and Royal Bank of Canada are leading a group of banks on the sale. An IPO of $2.25-billion would be the largest since the $2.49-billion initial stock sale by Manulife Financial Corp. in 1999.