Savannah Energy raises £11.3m through NIPCO’s investment
Savannah Energy PLC has completed a £11.3 million financing round following a strategic investment by Nigeria’s NIPCO Plc, marking the diversified energy group’s entry as a shareholder in the British independent energy company.
The transaction forms part of a wider fundraising programme by Savannah, which also includes the completion of the final £9.7 million tranche of its March 2025 fundraising. In total, the latest equity and share transactions deliver a combined cash injection of over £21 million into the company.
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In its financing and fundraising report, the British company stated that under the terms of the financing, NIPCO subscribed for 161,061,510 new ordinary shares at a price of 7 pence per share, raising £11.3 million before expenses.
In addition to the new share subscription, NIPCO acquired a further 113,378,685 shares issued as part of Savannah’s March 2025 fundraising for £7.9 million, and 135,674,944 shares through secondary market trades for £9.5 million.
Altogether, the transactions represent an estimated £28.7 million total investment by NIPCO, giving the company an approximate 19.4% stake in Savannah Energy’s enlarged share capital.
Andrew Knott, Savannah’s Chief Executive Officer, described NIPCO’s entry as a significant milestone that would support the company’s next phase of growth.
“We are pleased to welcome NIPCO Plc, a diversified Nigerian energy conglomerate, as a new strategic shareholder in Savannah. Their investment underlines strong confidence in our business model and will enable the advancement of several business development opportunities currently under consideration,” Knott said.
As part of the transactions, Knott himself increased his shareholding in Savannah to around 12.6%, demonstrating what the company called his continued confidence in its long-term prospects.
He acquired 25.6 million new shares under the March 2025 fundraising for £1.8 million, alongside 32.2 million existing shares through a secondary trade for £2.3 million, and a further 63.7 million shares from the company’s employee benefit trust (EBT) for £4.5 million.
Savannah also announced a conditional share buyback agreement to repurchase up to 143,565,582 existing shares at 7 pence each by March 2026, subject to shareholder approval.
In a related move, the company will acquire and cancel warrants over 101,113,992 ordinary shares to prevent future dilution, a step expected to reduce its fully diluted share capital by about 4.5 percent.
According to Savannah, the proceeds from the fundraising will be used to strengthen its balance sheet, accelerate near-term business opportunities, and support general corporate purposes.
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The board said NIPCO’s investment brings industry expertise and financial depth to the company, which is pursuing growth through its “Projects that Matter” initiative across Africa.
The EBT will also subscribe for 210 million new shares at nominal value (£0.001) to facilitate employee incentives and align staff interests with shareholders. This transaction will be funded from cash received through the company’s purchase of the cancelled warrants.
Savannah noted that shareholders representing around 50% of its enlarged issued share capital have expressed written support for the financing, buyback, and EBT transactions.
Following the completion of all share issuances, Savannah Energy’s total number of ordinary shares in issue will rise to 2.12 billion, with admission of the new shares to the London Stock Exchange’s AIM market expected on October 28, 2025.
