By Cole Latimer
Mick McCormack, the founder of gas pipeline monopoly APA, plans to spend time working and getting fit on his family's Queensland property once he leaves the company in 2019, before looking for board or community roles.
The 57-year-old said his departure by the end of next year "shouldn't be a surprise to anyone", as it had been delayed by Hong Kong-based utility firm CKI failed $14 billion takeover bid for APA, which was blocked by the government last month on national security grounds.
APA chief executive Mick McCormack: "In deciding to call time, I know that the company is in a strong position."Credit: Peter Braig
The board has begun an internal and external search for a replacement, although Mr McCormack expressed a preference for one of his current management team to step up.
"The board is considering both external and internal candidates, but I often say we've got the best management team in the country so there are plenty of people internally," he said on Thursday.
“In deciding to call time, I know that the company is in a strong position, with excellent prospects."
An energy analyst, who preferred to remain anonymous, said there were a number of strong internal and external candidates for APA to target.
He considers APA's chief executive of strategy, Ross Gerbach, and its head of transmission, Rob Wheals, the frontrunners.
"They appear to have been groomed for the role, and they have both been appearing at stockmarket functions," he said. "APA's CFO, Peter Fredicson, is well regarded but he has previously said he wouldn't be interested in the role."
The analyst pegged Paul Adam, the former chief of APA's main gas pipeline rival Jemena, as the most likely external pick.
Matt Brassington, the former head of another Australian gas pipeline company Epic Energy, as well as Epic's former director Steve Banning, were also potential candidates, he said, along with the former head of AGL's gas books and current chief of gas storage group Lochard Energy, Anthony "Chooky" Fowler.
"There is also a really strong pool of people from AGL and Origin's gas assets who could step into the role," he said.
Macquarie Bank analyst Ian Myles said Mr McCormack's retirement was expected and there were a number of potential internal candidates, although he declined to name them.
"It's not particularly surprising, but there are some good people at APA who could fill his shoes," Mr Myles said.
Mr McCormack said he had planned to retire earlier but the CKI bid "got in the way".
"When you look at APA, there was a change in the chairman and then there should be a change in chief executive. The fact CKI's bid failed just got us to where we are today," he said.
He planned to spend more time at his family's property in Queensland once he'd served out his 12-month notice period.
"I'll work on the farm for a bit, get a bit fit, knock off the booze, eat a bit healthy," he said.
While he would consider other opportunities, he was not looking at another full-time executive role.
"I'd look at director jobs if they're of interest or maybe community roles, I wouldn't mind that."
APA's shares were down 1 per cent at $8.815 in early afternoon trading.