* Hydro One IPO set to close this week, raise up to C$1.83
bln
* IPO funds to help finance a slew of infrastructure
projects
(Adds comments from minister, background on sale)
By Euan Rocha
TORONTO, Nov 2 (Reuters) - Canada's Hydro One HYDRO.UL
drew buying interest from some pension funds that covet such
assets, but an initial public offering of the electricity
distributor was always the government's preferred option,
Ontario's finance minister said on Monday.
The IPO, which is expected to close later this week, is set
to raise up to C$1.83 billion ($1.4 billion) for Canada's most
populous province, which is only selling a roughly 15 percent
stake in the utility.
"If the pension funds had their way, the broadening of the
ownership structure in Hydro One wouldn't have occurred, because
they wanted to take it all," Finance Minister Charles Sousa told
media on the sidelines of the P3 2015 investment conference in
Toronto.
The privatization of the utility will allow the province to
fund transportation infrastructure projects, including public
transit, bridges and highways, the government has stated.
"We see the value in ensuring there's broad ownership," said
Sousa.
Detractors of the plan have questioned the wisdom of selling
a stake in the asset that is a cash cow for the province, but
the government has said it believes the public benefits even
further from broadening the ownership as Hydro One as it will
create a stronger-performing and more customer service-focused
company.
Hydro One shares priced near the top-end of their expected
pricing range, making the IPO one of the largest in Canadian
history.
The stock is set to list on the Toronto Stock Exchange under
the ticker symbol "H", and begin trading on Nov. 5.
During the drawn-out IPO exploration process, however, Sousa
said the government attracted "lots of interest" from pension
funds interested in buying out the asset.
Canadian funds like the Canada Pension Plan Investment Board
and its peers like the Ontario Teachers' Pension Plan and Caisse
de dépôt et placement du Québec have been among the world's most
active dealmakers in recent years, making major bets in sectors
like energy, infrastructure and real estate.
($1 = 1.3100 Canadian dollars)