Tim Fraser/The Globe and Mail
Ontario's government named Denis Desautels, former Auditor General of Canada, as special adviser to the Minister of Energy on its plans to sell part of electrical utility Hydro One Inc. through an initial public offering.
Desautels, who was auditor general from 1991 to 2001, will provide independent advice and help support the IPO process, the provincial government said Tuesday in a statement. He'll also review the processes followed by the government to identify potential conflicts of interest tied to engagement of financial advisers or other service providers for the IPO.
"Specifically, he will help to observe the process and assess the criteria used to select underwriters and the lead bookrunner," Bob Chiarelli, Energy Minister, said in the statement.
Ontario invited Goldman Sachs Group Inc., Barclays Plc and Canada's six biggest banks to pitch for a role in arranging the IPO, according to people familiar with the process. The investment banking units of Toronto-based Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and Montreal-based National Bank of Canada are also invited to pitch for a role.
Ontario said April 16 it plans to sell 15 per cent of Hydro One in an IPO worth as much as $2.25-billion to raise money for transportation and debt repayment. The utility is Ontario's largest electricity transmission and distribution system, with about 1.4 million customers and $22.9-billion of assets as of March 31.
Ontario will ultimately sell as much as 60 per cent of Hydro One during the next four or five years, Premier Kathleen Wynne said April 16. Hydro One is estimated by the province to have an equity valuation of $13.5-billion to $15-billion.