By: Goodluck E. Adubazi, Abuja.

Savannah Energy Plc, the British independent energy company driving “Projects That Matter” across Africa, has announced a major strategic realignment with its largest shareholder, NIPCO Plc, marking a significant moment in clarifying ownership structure, strengthening governance, and preserving capital.

The company disclosed that it is set to enter into a formal Relationship Agreement with NIPCO Plc, a diversified Nigerian energy conglomerate, following NIPCO’s plan to increase its equity stake in Savannah through secondary market purchases. As part of this move, Savannah will terminate its previously announced off-market share buyback agreement.

In a statement released on the development, Okwudili Onyia, Communications Manager at Savannah Energy, confirmed that NIPCO intends to acquire additional existing ordinary shares through a series of secondary market transactions.

Consequently, Savannah will terminate the off-market share buyback agreement announced on 22 October 2025 and approved by shareholders on 28 November 2025.
Following the termination, NIPCO plans to acquire 118,083,927 ordinary shares out of the 143,565,582 shares previously earmarked for the buyback.

This acquisition would lift NIPCO’s ownership to approximately 25 per cent of Savannah’s issued share capital.
NIPCO has also indicated interest in purchasing an additional 1.5 per cent stake from identified existing shareholders.

If completed, this would raise its total holding to around 26.5 per cent, although Savannah cautioned that there is no certainty these further acquisitions will occur.
Protecting Independence, Strengthening Governance

At the heart of the arrangement is the proposed Relationship Agreement, designed to safeguard Savannah’s operational independence and protect minority shareholders. Under the agreement, NIPCO will:
Support board-recommended governance resolutions through its voting rights
Forego any right to board representation
Refrain from pursuing a hostile takeover of Savannah (subject to limited exceptions)
Comply with orderly market rules for any future disposal of its shares

The agreement will remain in force as long as NIPCO and its affiliates hold 12.5 per cent or more of Savannah’s issued share capital. Finalisation is expected shortly, following regulatory consultation.

£10 Million Cash Preserved
Savannah’s Board said, the decision to terminate the buyback agreement was taken after professional external advice and reflects a clear strategic advantage for both the company and its minority shareholders.
By scrapping the buyback, Savannah will preserve approximately £10.05 million in cash, significantly boosting financial flexibility.

The Board stressed that the company still retains the ability to return capital to shareholders through board-approved on-market buybacks.

CEO Deepens Commitment
In a further show of confidence, Savannah’s Chief Executive Officer, Andrew Knott, will acquire the remaining 25,481,655 ordinary shares that were subject to the terminated buyback but not taken up by NIPCO. This purchase will raise his total holding to 292,764,370 shares, representing about 13.8 per cent of the company.

The Board described the move made through an investment vehicle wholly owned by the CEO—as a strong signal of management’s confidence in Savannah’s long-term strategy and a clear alignment with shareholder interests.
Regulatory Oversight and Assurance
Savannah confirmed that the termination of the buyback agreement and the entry into the Relationship Agreement constitute related party transactions under the AIM Rules for Companies. However, the company’s independent directors, after consulting with nominated adviser Strand Hanson Limited, concluded that the arrangements are fair and reasonable for shareholders.

A Strategic Reset
With clearer governance safeguards, stronger shareholder alignment, and enhanced financial flexibility, Savannah Energy’s latest move positions the company for a more stable and transparent growth phase—while reinforcing confidence in its leadership and long-term African energy ambitions.