Smoke and mirrors....Hydro One Limited Announces Secondary Offering of Common Shares by the Province of Ontario TORONTO, ONTARIO--(Marketwired - May 8, 2017) -
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Hydro One Limited ("Hydro One" or the "Company") (TSX:H) announced today that Hydro One, together with the Province of Ontario (the "Province"), have entered into an agreement with a syndicate of underwriters for the secondary offering by the Province (the "Offering"), on a bought deal (firm commitment offering) basis, of 120,000,000 common shares ("Common Shares") of Hydro One at a price of $23.25 per share, for total gross proceeds of $2.79 billion. In addition, the Province has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 12,000,000 Common Shares at the same price per share which, if exercised in full, would increase the gross offering proceeds to approximately $3.07 billion. Hydro One will not receive any of the proceeds from the sale of Common Shares by the Province.
Of course Hydro One won't receive any of the proceeds. The share sale is by the province. This will allow the Liberals to say they balanced the budget next year during the election year. Only smoke and mirrors government accounting allows this sort of book keeping. The question is, will Ontario voters fall for it like they usually do? Sadly, probably yes. Brain dead, simply brain dead.
Cheers.