Ontario Government Helped Unions Buy Shares in Hydro One Inc IPO

Your government at work:

On a day when the overall Canadian equity market fell 0.75 per cent, Thursday proved a rewarding first day in public trading for shareholders in Hydro One Inc., with the beneficiaries of the 5.5 per cent jump including the Power Workers’ Union (PWU) and the Society of Energy Professionals (SEP).

The two unions, whose members work at either Hydro One or Ontario Power Generation, made out particularly well because they were able to buy shares largely with loans received from the province. And at some point before trading began, the province handed over far bigger loans to the unions than its original public plans had stated. …

The unions were to use the 15-year loan, held in trust, to buy Hydro One shares on the same terms and conditions as the public, including the pre-trading price of $20.50 (shares closed Thursday at $ 21.62). But the sale was to occur outside the normal distribution process, meaning the shares purchased by the two unions are over and above the 81.1 million placed with the public. If the underwriters exercise the so-called over-allotment option, the company would be diluted by another 8.15 million union-held shares.

The loans were made because the province believes it “will better align the interests of the members of the unions with the interests of other investors in Hydro One.”

As part of the deal, the unions would also set up another trust where they would use their own funds to buy Hydro One shares also at $20.50. The additional money invested beyond the loans seems to have been fairly small: According to a Thursday filing, the PWU in total bought 3,756,097 shares, for $77 million — $2 million more than the loan — while the SEP bought 1,890,243 shares, for $38.750 million, just under $3 million more.


  • eMan14

    Why doesn’t Wynne just put a Union Head into her Cabinet? She’s given them everything else.

  • wallyj180

    Sounds like insider trading to me.
    But, I don’t know the laws of Ontario.

    If the unions had lost money, who would have covered it ?
    Why would a gov’t lend money to a union ?

    • Exile1981

      because the union provided votes.

  • 2maxpower

    what a scam. so basically the government is now a corporation that floated shares so taxpayers could buy a piece of something they already owned. (except the unions who used taxpayer money to buy shares on the cheap).

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  • Raymond Hietapakka

    Bye bye to Public Accountability.

  • Ron MacDonald
  • CodexCoder

    Even if Canada had insider trading regulations, the OPP’s cooperation has been purchased by the Wynne government, and nothing will happen. Think Sudbury, and any number of other scandals.

    And thanks, Ron McDonald for the CTV link. Why, given the current operating environment, would any sane person, or corporation invest in Hydro One? And to Boob Chiarelli, the declining fortunes of manufacturing in the province are not due to the recession, but the Liberal Party of Ontario’s dismal record in dealing with unions, their poor choices in power management and the corresponding high cost of electricity, in short, bad government and too much of it.

  • Gary

    I predicted an even worse case where the Public sector pension Funds will buy huge Blocks of shares to be an insider de-facto for the Dividends and the threats pre-election to dump all their shares and drive the price down is Wynne doesn’t meet their demands .

    Union pension funds currently own Shares of the 5 big banks and big Oil ( 4-profit and many non-union jobs) companies as CUPE bosses like the old Sid Ryan would demonize them and oppressing employees .
    Ryan didn’t want the media to catch on to his scam to act tough and bash the 4-Profit businesses as evil while his Pension avoided investing in Union run Businesses that often go broke and show poor profits as we saw with GM and Chrysler .
    Even when Buzz Hardgrove was asked if his workers would buy shares in the Auto Companies for the profit sharing on top of their pay…..he said that we only assemble the cars and don’t want the risks for a poor product .

    Wynne just announced that her plans to balance the budget in 2018 are at risk , this is what I knew right when she took over from Dalton McLiar because she started to blame Harper for not bailing her out. I also saw how she kept her stupid smile as she went in debt by $20,000,000,000.00 a year while spending more money to buy the Election .

    Now that Justin runs the RCMP as Wynne runs the OPP , the criminals are in charge and we’ll have endless scandal and pay-off to keep both of them in power.

    Obama has promised illegals up to $25,000.00 for retro-active tax credits over the past 5 that they never filed a tax return . But if you are an illegal and worked for cash , how do you prove you were in the USA for 5 years and had a income to get the $25,000.00 Credits???
    You can’t , he bought the votes from the Hispanics that can now Vote in the 2016 Elections in Sanctuary Cities while Obama has almost 50,000,000 on Food Stamp and the Welfare votes from his FREE Phones letting Black Lives Matter street thugs riots and shoot Cops to get even for slavery .

    Wynne relies on the useful idiots and lazy that are too stupid to see the ponze Scheme.

    • Canadian Born

      Now who are the stupid ones, would it be us the people of Ontario that will not stand up for our rights? I for one get sick to my stomach every time I see her “using the term loosely” face or hear that so annoying voice I have to turn the station. Ontario and Canada used to be a beautiful place to live and now our children will be the ones to suffer, which is too bad since it was their ancestors that fought and died for this once great country.

  • Exile1981

    Don’t worry wynne will write off those loans in a year or so and the unions will never repay them.