Kibo Energy revises strategic direction, restructures board and makes an about turn on share placement

Kibo Energy business card. SUPPLIED.

Kibo Energy business card. SUPPLIED.

Published Jun 21, 2024


JSE-listed Kibo Energy has rescinded its previously announced board changes and has made an about turn on a proposed share placement amounting to £500 000 (R11.4 million).

Kibo Energy is a multi-asset sustainable energy developing projects in sustainable energy, reserve power and long-duration storage that address acute power deficits in sub-Saharan Africa and the UK.

Earlier this month, Kibo, which has significant interests in UK power-generating assets owner and operator, Mast Energy said it was restructuring its board.

Mohammed Ashraf had been proposed to join the Kibo board as executive director and CEO.

James Parsons has also been provisioned to join the company in a non- executive director capacity with specific focus on overseeing and implementing the restructuring of the company.

Stefania Barbaglio has been enlisted as non-executive director and chairperson of the Kibo Energy board of director while Clive Roberts IS proposed as non-executive director.

However, following what the company described as consultations with stakeholders and advisers, Kibo Energy has decided to reconsider its strategic direction.

It said yesterday that the proposed board changes would not proceed as originally planned.

Under the new board composition, Louis Coetzee, Kibo’s current CEO and interim chairman, will step down from the two roles but “will continue to assist the company in a consulting” capacity.

“Kibo proposes to appoint Cobus van der Merwe as executive director subject to completion of regulatory due diligence. Cobus is currently the Chief Financial Officer of the Company, a position he has held for just over 2 years,” the company said.

Van der Merwe, who has “extensive experience in managing bespoke investment portfolios for high net-worth individuals, including capital raising and facilitating deal” making, is a member of the SA Institute of Chartered Accountants.

Kibo Energy has proposed to appoint Clive Roberts, who is a significant existing shareholder in the company, as a non-executive director and chairman of the board subject to completion of regulatory due diligence.

While Kibo had announced the board restructuring which has now been rescinded, it also announced a divestment program that would have resulted in a restructuring of the company’s balance sheet.

As a consequence of the board composition review, Kibo has made an about turn on the proposed placing of £500 000 at 0.015 pence.

This placement “will also not proceed and the company has arranged and agreed a revised alternative board composition and a new” placing.

Roberts, who has spent the last 10 years investing in start-ups and London AIM listed companies, has helped raise significant funding for multiple companies and is being enlisted to the Kibo board to help with the company’s fundraising efforts.

“In support of the new board appointments and the restructuring of existing debts, the company has conditionally raised £340 000 (R7, 820bn) by way of a placing of 3,400,000,000 new ordinary shares,” Kibo Energy explained.

The remaining £100 000 (R2, 3bn) of the placing amount has been raised through two private subscriptions of £50 000 (R1, 150bn) each. An application will now be made to the London Stock Exchange for the admission of the 3,400,000,000 placing shares.

Kibo Energy's UK subsidiary, Mast Energy Developments has already drawn down the second tranche of funds advanced by River Fort for its Pyebridge project in Derbyshire as it looks for additional capex for its other power generation sites.

Pieter Krügel, CEO of Mast Energy said earlier this month that the kick-starting of work on the second phase of the Pyebridge project was set to boost the company’s revenues and profitability.