The City of Pickering and the Town of Ajax – which collectively hold 49.7 per cent stake in utility provider Elexicon Corp – have announced their intention to seek valuation of their shareholding prior to a possible divestment.
Pickering owns some 27.9 per cent shares while Ajax owns 21.8 per cent. Collectively, the two municipalities own 49.7 per cent, the municipalities said in response to an inquiry from Durham Post.
“Together, we have retained Borden Ladner Gervais LLP to undertake a confidential non-binding Request for Proposal (RFP) to explore the potential sale of our municipally-owned holdings in Elexicon Corporation,” said a joint statement yesterday.
“We’re undertaking the RFP process to explore the potential sale of our municipally-owned holdings/shares. Valuation of shares will occur as part of the RFP process. If a sale does happen, then the final purchase price will be made public,” the municipalities told Durham Post.
“As the electricity landscape continues to evolve and transform, we believe the time is right to assess our role in the sector and explore the financial value of our investment in a competitive manner. This is a responsible step to ensure we secure optimum value of our investment for our long-term financial objectives and needs. Once the RFP process is complete, the city and town will provide an update on any next steps,” the statement added.
Elexicon Energy, a subsidiary of Elexicon Corporation, is the local distribution utility that delivers electricity to Pickering, Ajax, Clarington, Whitby, Belleville, Port Hope, Brock, Scugog, Uxbridge and Gravenhurst. Elexicon Corporation and its predecessor firm, Veridian Corporation, has existed since the Ontario electricity sector was restructured in 2000. As a regulated electricity distribution utility, Elexicon Energy’s rates are approved by the Ontario Energy Board.