TORONTO — The Ontario government is selling what it expects to be its final offering of shares in Hydro One, a move it says could raise more than $3 billion for the province.

The government and Hydro One say they have entered into an agreement with a syndicate of underwriters for the offering on a bought-deal basis of some 120 million common shares.

Each stock will be sold at $23.25 for total gross proceeds of $2.79 billion.

An over-allotment option exercisable for up to 30 days would allow the province to sell an additional 12 million common shares at the same price, which would raise gross proceeds to about $3.07 billion.

After the offering, the province will continue to hold some 296.8 million common shares representing about 49.9 per cent of the company. That could drop to 47.8 per cent if the over-allotment option is exercised in full.

The Ontario government is prohibited by law from reducing its ownership below 40 per cent.

With the completion of the transaction announced Monday, the Ontario government says it will have exceeded its goal of raising $9 billion in gross proceeds and other revenue benefits from partially privatizing Hydro One.

The government says it does not anticipate any further offerings of Hydro One shares.

The Canadian Press