On April 16, 2015, the Government of Ontario announced that negotiations were underway with respect to a potential three-way merger of PowerStream Holdings Inc., Enersource Corporation and Horizon Utilities Corporation, and an opportunity to acquire Hydro One Brampton Networks Inc. from the Province to create the second largest local distribution company in Ontario.

The three PowerStream shareholders, Markham, Vaughan and Barrie (and their holding companies) partnered to evaluate the proposed merger transaction.

The City of Markham’s holding company is Markham Enterprises Corporation (MEC). The City of Markham owns 100% of MEC, which in turn owns 34.2% of PowerStream Holdings Inc. shares. MEC is governed by a Board of Directors, comprised of the 13 Markham Councillors.

Navigant Inc. and BDR North America were retained to provide independent advice and financial due diligence, and Gowlings LLP was retained to undertake legal due diligence and to support a decision on this important transaction.

The MEC Board held several meetings during 2015 to consider financial and legal due diligence updates.

On May 26, 2015, a report was received at Markham’s General Committee on the proposed transaction, including the expected timelines, as well as the negotiation and decision-making process. This report was also received by Council on June 15, 2015.