Update: Tory refutes reports Hydro One in talks to buy Toronto Hydro
Toronto Mayor John Tory says no discussions are going on about the sale of Toronto Hydro to anyone.
Tory released this statement:
"I can confirm that no discussions are taking place with respect to the sale of Toronto Hydro to anyone, I clearly indicated that I would not be supporting any proposal to sell Toronto Hydro. Rather, I indicated my support for additional City investment in a Toronto Hydro that remained in public hands."
Reports out Saturday that Hydro One Ltd is in talks to by Toronto Hydro Corp for $2.2 billion dollars as the city continues to explore options to finance various infrastructure projects.
People with knowledge of the matter told Reuters the two companies have been in discussion for the past few months. Talks have not entered the final stages and could still fall apart according to one person.
City councilors echoing the statement.
The city of Toronto owns 100 percent of Toronto Hydro. One person tells Rueters the city is "also exploring other ways to monetize its assets, including by publicly listing Toronto Hydro, as well as by selling its Green P parking business or other real estate assets." The Green P parky asset is likely worth more than $1 billion dollars, they added.
The Toronto Hydro has been under financial pressure as it attempts to make infrastructure investments around its electricity grid.
Under one proposal, Hydro One would pay about half the deal value in cash and the rest in stock, Reuters reports. A cash-and-stock transaction with Hydro One would allow the city to benefit from Hydro One's dividend as well sources tell them.
A deal would also help Hydro One's growth ambitions as a public company after it raised C$1.8 billion in one of Canada's biggest IPOs in 2015. Hydro One, backed by the province of Ontario, has a market value of C$14 billion.
Spokesmen for Hydro One and Toronto Hydro declined to comment.
With files from Reuters