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Ontario to raise $2.8 billion from Hydro One

Staff Writer |
Ontario is concluding its initiative to broaden the ownership of Hydro One, and will dedicate the net proceeds towards the largest investment in public infrastructure in the province's history.

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The Province offered 120,000,000 common shares at $23.25 per share for total gross proceeds of approximately $2.8 billion, in this offering.

The Province also granted an over-allotment option to the underwriters to purchase up to an additional 12,000,000 common shares, which if exercised in full, would result in total gross proceeds of approximately $3.1 billion.

With the completion of this transaction, the Province will have exceeded its objective to raise $9 billion in gross proceeds and other revenue benefits from broadening the ownership of Hydro One.

As a result, the Province will have completed this initiative and does not anticipate any further offerings of Hydro One shares by the Province, other than sales for the collective benefit of Indigenous communities resulting from previously disclosed discussions.

The Province will remain the largest shareholder in Hydro One and is prohibited by law from reducing its ownership below 40 per cent. By law, no other shareholder or group of shareholders is permitted to own more than 10 per cent of the company.

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