Maple Leaf Foods Inc. Chief Financial Officer Michael Vels speaks to shareholders during the company's annual general meeting in Mississauga, April 29, 2009. Vels has been named CFO of Hydro One, Ontario’s power utility.MIKE CASSESE/Reuters
Former Maple Leaf Foods Inc. executive Michael Vels has been appointed CFO of Hydro One Inc.
Mr. Vels spent more than two decades at Maple Leaf Foods, including a 10-year stint as its CFO. In 2014 he was replaced by Debbie Simpson following a restructuring at the company, after the sale of Canada Bread to Grupo Bimbo of Mexico.
In a press release, Hydro One highlighted Mr. Vels's experience in debt and equity capital raising and mergers and acquisitions.
"Mr. Vels's appointment represents an important next step in the process to sell a portion of Ontario's interest in Hydro One through an initial public offering (IPO)," said David Denison, chairman of Hydro One.
Commentary from the analyst community was favourable.
"He's got the public market experience" said Bob Gibson, an analyst with Octagon Capital Corp. Mr. Vels is known as a CFO who provides above and beyond financial disclosure and transparency, added Mr. Gibson.
Sam La Bell, an analyst with Veritas Investment Research Corp. said Mr. Vels was known for his skills as a "collaborator" at Maple Leaf Foods. With so many "stakeholders" involved in the IPO of Hydro One, that attribute will stand him in good stead, he added.
Last week Hydro One announced that Scotia Capital Inc. and RBC Dominion Securities Inc. will lead the IPO, which is expected later in the year. Fees paid out to bankers will be much lower than the norm. Stock sold to institutional investors will pay out a commission of only 1 per cent to banks. Shares sold to retail investors will pay 3 per cent. Typical fees for IPOs are from 5 per cent to 7 per cent.
Mr. Vels starts on July 1.
Niall McGee