The Ontario government is planning its next move in the sell-off of Hydro One.
The province has agreed to a deal in principle to loan Ontario’s First Nations up to $268-million to buy up to 15-million shares at $18 per share.
Recently, the stock has been trading in the $24 to $26 range.
At least 80 per cent of the band councils in Ontario will have to approve the agreement by the end of next for the deal to go through.
If approved, Ontario would provide seed capital of up to $45-million over three years and sell the shares to an investment vehicle owned collectively by First Nations.
If the 15-million shares are sold to First Nations, it would represent 2.5 per cent of the total shares in the company. 30 per cent of the utility’s shares have already been sold.
Energy Minister Glenn Thibeault calls the agreement unprecedented and reflects Ontario’s commitment to strengthening its relationship with First Nations.