THUNDER BAY -- The Kathleen Wynne government has now completed the sale of over 14 million common shares of Hydro One Limited to OFN Power Holdings, a partnership controlled by 129 First Nations around the province.
The shares–representing 2.4 per cent of the outstanding common shares–were sold for $18 each for a total price of just under $260 million.
The transaction was financed through a 25-year term loan from the province amounting to the full amount of the purchase price. In an announcement on Tuesday, the government said the shares that were sold have been pledged as security for the loan.
In addition, Ontario has provided $29 million in seed capital to a new investment fund wholly-owned by Ontario First Nations Sovereign Wealth LP.
The announcement stated the transaction fulfils the government's commitment in an agreement-in-principle with First Nations which was announced in July 2016.
It said it "demonstrates the good will envisioned by the political accord to promote stronger economic relations and is one of many steps on Ontario's journey of healing and reconciliation with Indigenous peoples."
The statement added that having a stake in Hydro One will provide meaningful opportunities to First Nations for collective wealth creation and to advance economic development.
