In September, President Scott Travers announced to all members that The Society had reached an agreement with the Ontario government to purchase shares in Hydro One. That agreement provided the opportunity to purchase further shares under the same loan terms. The Society is in the process of finalizing the purchase of the greatest number of shares possible under that agreement as a vote of confidence in Hydro One and as a prudent investment in the fiscal future of the union.
Under the terms negotiated, The Society will buy shares at the initial public offering price. The Society will have private placement to purchase $3 million worth of shares in cash while the remaining shares will be paid for with a $36 million loan from the Ontario government. That loan is secured by the value of the shares purchased with the loan, which will be kept in trust. The loan will be paid off through the dividends accrued by the shares at the same interest rate at which the Ontario government borrows money plus 0.15%. It is expected that the loan will be repaid within 15 years. When the loan is paid back, The Society will have full access to the shares to support the work of the union.
If you have any questions, please contact your local leadership.
