31st Jul 2014 07:57
LONDON (Alliance News) - Oil and gas explorer and producer Afren PLC saw its shares slump Thursday after its board suspended the chief executive and chief operating officer pending an investigation into alleged evidence of unauthorised payments that were potentially for the benefit of the executives.
In a statement, the company said that in the course of an independent review on the board's behalf by Willkie Farr & Gallagher (UK) LLP of the potential need for disclosure of certain previous transactions to the market, evidence had been identified of the receipt of unauthorised payments potentially for the benefit of CEO Osman Shahenshah and COO Shahid Ullah.
"These payments were not made by the company. The investigation has not found any evidence that any other board members were involved," it said, adding: "No conclusive findings have yet been reached and the investigation is ongoing."
Afren said Non-executive Chairman Egbert Imomoh has agreed to become executive chairman and the board has appointed Senior Independent Director Toby Hayward as interim CEO while the investigation continues.
It added that it has no reason to believe the issue will affect its financial and operational position, but has decided to postpone the company's half-year results, which had been due to be released on August 4. It said it expects to put them out before the end of August.
"The board has notified the relevant regulatory authorities that the review is taking place and will update the market as appropriate," it added.
Afren shares were down 32.8% at 100.00 pence early Thursday, by far the biggest decline on the FTSE 250 and and two-and-a-half year low for the stock.
The company has operations across Africa as well as in the Kurdistan region of Iraq.
By Steve McGrath; [email protected]; @stevemcgrath1
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