Hydro One's IPO presents a unique opportunity for Fortis [FRTSF], which already operates several distributions utilities within Ontario and operates some power generations facilities.
With Fortis have finally announced the results of a strategic review of the property unit being a commercial sale, the company will obtain approximately $430 million from Slate Office REIT. While some investors may clamor for shares repurchases, dividend payments or other capital adjustments, an investment in Hydro One, set to go public later this year, would provide an excellent strategic investment and a great opportunity to park cash until better opportunities arise.
Hydro one - Strategic reasoning
Fortis announced the sale of the properties units just hours ago, selling the entire portfolio to a single buyer for $430 million, on the lower end of most analyst estimates.
The sale of the properties
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.