BowLeven chairman resigns amid activism upheaval

Bowleven has terminated the contracts of two executive directors and chairman Billy Allan has resigned from the Africa focused oil and gas group with immediate effect, following pressure from dissident shareholder Crown Ocean Capital (COC).

Allan, who had occupied the role for only 18 months and had the backing of most shareholders apart from 23%-owner COC in a recent emergency shareholder meeting, will be replaced by current non-executive director Christopher Ashworth, who has COC's backing.

The board confirmed that the employment contracts of both former executive directors Kevin Hart and Kerry Crawford have been terminated with effect from 31 March 2017, and both are no longer involved in the running of the company.

"The board continues to focus on carrying out its previously announced strategic review and a further announcement will be made regarding this in due course," the AIM-listed company said.

COC, a Monaco-based offshore private investment vehicle, successfully requisitioned an emergency shareholder vote on 15 March, where it voted five directors off the board.

This has been followed by a second requisition, calling for the removal of Allan and the appointment of a further two of COC's nominees.

The strategic review, which is being undertaken in the interest of maximising value for shareholders, will examine options available to the company, including transforming into a holding company, as proposed by COC, alongside other matters already being progressed and negotiated by the board prior to the meeting.

Analysts at broker Shore Capital said that given the broader reconstitution of the board following the recent shareholder activism, Allan’s position "had not appeared particularly tenable to us, and we are therefore unsurprised by today’s news".