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Hydro One IPO almost did not happen -Ontario minister

Published 2015-11-02, 02:17 p/m
© Reuters. Hydro One IPO almost did not happen -Ontario minister

By Euan Rocha
TORONTO, Nov 2 (Reuters) - The initial public offering of
Hydro One almost never happened because of strong
interest from Canadian pension funds in buying out the entire
government-owned electricity distributor, 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.
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)

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