Nipco Plc, a leading Nigerian energy conglomerate, has acquired a 19.4% stake in London-listed Savannah Energy Plc for £28.7 million ($38.2 million), a move that marks its entry into upstream and midstream energy investments.
The deal, announced by Savannah Energy on Thursday, gives Nipco a strategic foothold in Savannah Energy, a company with operations spanning Nigeria, Niger, Cameroon, and Chad.
According to the statement, Nipco intends to acquire 113,378,685 ordinary shares issued as part of the company’s March 2025 fundraising for £7.9 million ($10.52 million) and another 135,674,944 shares through secondary market trades valued at £9.5 million ($12.65 million).
The new investor will also subscribe to 161,061,510 fresh ordinary shares at seven pence each, amounting to £11.3 million ($15.05 million) before expenses.
The acquisition was made through a private share purchase agreement, according to filings on the London Stock Exchange.
Transaction approved by Savannah’s board
The planned deal has been greenlighted by the board of Savannah, who view the investment as necessary to boost the company’s liquidity.
“The Board considered the proposed introduction of NIPCO to be beneficial to shareholders as a whole, bringing onto the company’s share register a diversified Nigerian energy conglomerate with deep industry expertise”, the statement read.
“The Board believes that the new investor’s intended investment will strengthen the company’s balance sheet, broaden its shareholder base, and support the next phase of the company’s growth.”
Following this transaction, Nipco now holds 249.5 million ordinary shares in Savannah Energy, making it one of the largest shareholders in the company.
Savannah’s Chief Executive Officer, Andrew Knott, said the proceeds from the primary investment will be directed towards the advancement of certain business development opportunities currently under consideration.
What you should know about Savannah Energy
Savannah is known for its focus on gas-to-power projects and upstream oil and gas assets across Africa,
The company owns an 80% controlling stake in its flagship Accugas gas business in Nigeria, which has just been recently upgraded with the addition of a new gas compression system.
The facility supplies piped natural gas to industrial users and power stations, including the 560MW Calabar NIPP and the 150MW Ibom Power Plant.
Accugas is said to support over 20% of Nigeria’s power plants.
Outside Nigeria, the UK integrated energy is also expanding its footprint elsewhere in Africa’s fast-growing power sector.
In September, the firm acquired Klinchenberg BV’s 50.1% of interests across three hydropower projects in Rwanda, Tanzania and Uganda.
The transaction, valued at $65.4 million, marks Savannah’s strategic expansion into East Africa.
Recent strategic investment by Nipco
Nipco Plc is a privately held Nigerian energy company headquartered in Lagos, with operations spanning petroleum marketing, gas distribution, and infrastructure development. It is backed by corporate investors.
Formerly known as IPMAN Petroleum Marketing Company Limited, it rebranded to Nipco Plc in 2004 to reflect its broader energy ambitions.
The company’s core operations lie in fuel retail, LPG, CNG as well as own and operate key assets including jetties, tank farms and pipelines.
The company’s investment in Savannah signals a growing interest in upstream and midstream assets, as Nigeria seeks to deepen domestic energy integration and reduce reliance on imports.
Also, the transaction follows rising investment interests by Nipco in African energy firms, particularly those focused on gas infrastructure and transition fuels.
Before this Savannah deal, Nipco acquired 250 branded fuel retail outlets from 11 Plc (formerly Mobil Oil Nigeria) in August 2024.
