Savannah Energy Plc has announced plans to enter into a relationship agreement with its largest shareholder, NIPCO Plc, alongside the termination of its previously approved off-market share buyback, as the Nigerian energy conglomerate moves to significantly increase its stake in the company.
 
In a statement, the British independent energy company said NIPCO intends to acquire additional existing ordinary shares through a series of secondary market transactions.

This give NIPCO the opportunity to expand its midstream operations in the gas sector. As part of this process, Savannah will terminate the off-market share buyback agreement announced on October 22, 2025, and approved by shareholders on November 28, 2025.
 
Following the termination, NIPCO is expected to acquire 118,083,927 of the 143,565,582 ordinary shares that were subject to the buyback agreement.  According to the company, the transaction would raise NIPCO’s ownership to about 25 per cent of Savannah’s current issued share capital.

NIPCO has also indicated its intention to acquire up to a further 1.5 per cent of the company’s issued share capital through additional secondary market purchases from identified shareholders.
 
If completed in full, NIPCO’s total holding would rise to approximately 26.5 per cent, although Savannah noted that there is no certainty these additional acquisitions will occur.
 
Savannah said the proposed relationship agreement is designed to protect the company and its minority shareholders while ensuring the business continues to operate independently of its largest shareholder.
 
Under the agreement, NIPCO is expected to support board-recommended governance resolutions, have no right to board representation, refrain from pursuing any hostile takeover of the company subject to certain exceptions, and comply with orderly market disposal obligations for any future share sales, both on-market and off-market.

 In addition, the relationship agreement is expected to remain in force for as long as NIPCO and its affiliates collectively hold at least 12.5 per cent of Savannah’s issued share capital.
 
Entry into the agreement is anticipated shortly after regulatory consultation, with NIPCO expected to agree to any amendments that may arise from that process.
 
Savannah’s board stated that its decision to terminate the buyback agreement was taken after external professional advice and was driven by the strategic value of the relationship agreement.
 
The board noted that ending the buyback would preserve about £10.05 million in cash that would otherwise have been used to repurchase shares, improving the company’s financial flexibility while retaining its ability to return capital to shareholders through board-approved on-market buybacks authorised at the November 28, 2025, general meeting.