Kibo Energy PLC on Wednesday walked back the corporate restructuring plan, including a board overhaul and capital raise, it unveiled less than a week ago.

The Galway, Ireland-based company with energy projects in Africa and UK said on Wednesday it has decided to ‘reconsider’ its strategic direction and board changes following consultation with various stakeholders and advisors.

After consultation, the company said it is unlikely to proceed with all the board changes as announced and is working to agree the management team aligned with its recovery strategy.

It said it still planned to transition itself as a broader based energy company, looking also at opportunities in the oil and gas sector

But the proposed placing of £500,000 at 0.015 pence as originally envisaged will not proceed, the group said, adding it will provide an update on the revised proposed board composition and funding structure shortly.

The sudden change in strategy comes after Kibo on Friday last week announced the corporate restructuring.

To shake-up the board, Stefania Barbaglio had been appointed chair. Mohammed Ashraf was named as a new chief executive officer.

James Parsons and Clive Roberts were picked as non-executive directors.

Louis Coetzee, the company’s interim chair and CEO, would have stepped down as CEO.

On Friday, Kibo also said it was considering delisting from the Johannesburg Stock Exchange as part of this plan.

The majority of creditors had been assigned to a third party or to be converted into equity, it had said.

Shares in Kibo were up 13% at 0.013 pence each in London on Wednesday afternoon. In Johannesburg, Kibo shares were trading flat at R 0.01 each.

Copyright 2024 Alliance News Ltd. All Rights Reserved.