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Major Elexicon shareholders hold as Ajax, Pickering mull exit

The majority shareholders in Elexicon Holdings – Clarington, Whitby and Belleville – have announced their intention to hold on to their investment even as the other two shareholders, Ajax and Pickering, have decided to explore a possible exit.

Four Durham municipalities, between them, own 91 per cent of Elexicon Holdings.

Clarington, Whitby and Belleville together hold 50.3 per cent shares in Elexicon Holdings, while Ajax and Pickering hold the balance 49.7 per cent.

The Elexicon shareholding is as follows:

  1. Whitby owns 32 per cent
  2. Pickering owns 27.9 per cent
  3. Ajax owns 21.8 per cent
  4. Clarington owns 9.3 per cent, and
  5. Belleville 9 per cent

Ajax and Pickering have retained Borden Ladner Gervais LLP to undertake a confidential non-binding Request for Proposal (RFP) to explore the potential sale of their municipally-owned holdings in Elexicon Corporation (see below).

Asked if Ajax and Pickering ultimately decide to offload their shares, would Whitby, Clarington and Belleville buy out their stake, a majority shareholder spokesperson told Durham Post yesterday: “That matter is to be determined by the remaining shareholders. There are a number of options we could explore, but it is early in the process and we cannot predict the outcome at this time.”

The spokesperson said Elexicon would remain majority-owned by Whitby, Clarington and Belleville who are committed to the organization and its vital role that it plays in providing energy infrastructure in our communities. “We would continue to work with whoever the new shareholder is to ensure that Elexicon continues to be a strong, reliable company powering the future of our communities.

“As majority shareholders, the municipalities of Whitby, Clarington, and Belleville recognize the critical role that Elexicon plays in our local economies and the essential services it provides to residents and businesses, said a statement released Monday by the majority shareholders. “Maintaining majority control is a valuable investment that ensures Whitby, Clarington, and Belleville have a voice in local energy distribution.”

It pointed out that protecting this public sector partnership and avoiding privatization ensures the majority stakeholder municipalities continue to receive dividends that support key municipal initiatives and benefit taxpayers.

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.

Earlier Story

Ajax, Pickering explore sale of their 49.7% stake in Elexicon

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