Chairman John Poynton stood aside when the buyout approach was announced on Tuesday and has been replaced by John Akehurst.

Chief operating officer Peter Magarry will be acting CEO.

Browning yesterday said the resignation was due in part to the questions from analysts over how he and senior management could do their jobs and consider the buyout at the same time.

“I have been sensitive to the concerns expressed in recent days and believe stepping down as CEO is the appropriate thing to do,” Browning said.

“This course of action will help preserve the integrity of the MBO process and ensure Alinta retains effective management and corporate governance.”

Alinta said it supported Browning’s decision to step aside as CEO and said new management arrangements had been put in place to ensure continued effective management.

“The board has complete confidence in the strength of Alinta’s management team to ensure the smooth running of the company’s business activities and the efficient integration of our new assets,” Akehurst said.

Alinta will retain Browning’s services until June 30. He will reportedly continue to work on developing the buyout proposal as part of the MBO.

The energy utility said executive members of the MBO group will be quarantined from Alinta’s consideration of the MBO, any other proposal or bid, and business development activity and any other potential conflict of interest area.

The MBO group would continue to be available to provide advice to the board and management “on current projects as required and as appropriate”, it said.