There's been a slightly puzzling development in the looming $1-billion float of Australia's second biggest wine company, Accolade Wines, with the company's chief executive Paul Schaafsma set to bow out.
Schaafsma was appointed chief executive of Accolade in October, 2015 and is pulling the pin prior to the business listing in early 2017.
Accolade's 80 per cent owner CHAMP Private Equity has anointed Michael East, a 30-year wine industry veteran who is currently the general manager of Accolade's operations in Australia and Asia as the successor.
East has been appointed as deputy chief executive, effective immediately, and will take over as chief executive in the lead-up to the IPO, slated for early 2017.
An internal note to Accolade staff is understood to say that Schaafsma didn't want to commit to the role for the next few years but is happy to stay on and help with the listing process.
The expectation among IPO investors is that a CEO would be in place for a few years after an IPO in the interests of stability and continuity.
Schaafsma, who has bases in both London and Australia, didn't want to be at the helm for an extended timeframe beyond the IPO and is keen to pursue other opportunities in the wine industry and beyond.
As The Australian Financial Review revealed, CHAMP has Reunion Capital Partners advising on float preparations for Accolade, which sells brands including Hardys, Leasingham, Grant Burge and Banrock Station.
Joint lead managers will be appointed in the second week of September.
