SAVANNAH ENERGY PLOTS STRATEGIC MOVE WITH NIPCO: RELATIONSHIP AGREEMENT SET TO BOOST SHAREHOLDER VALUE
GREATRIBUNETVNEWS–Savannah Energy PLC announces relationship agreement with NIPCO Plc, terminating off-market share buyback agreement.
KEY DEVELOPMENTS:
– NIPCO to Increase Stake : NIPCO to acquire up to 26.5% of Savannah’s issued share capital through secondary market transactions.
– Relationship Agreement : Provides minority shareholder protections, ensures company’s independence from NIPCO.
– Buyback Agreement Termination : Preserves £10.05 million of Savannah’s cash resources, enhances financial flexibilityCEO’s Investment : Andrew Knott to acquire 25,481,655 Ordinary Shares, increasing his stake to 13.8%.
QUOTES:
– “The proposed Relationship Agreement would be of significant strategic value to the Company and its minority shareholders.” – Savannah Energy PLC Board
– “The Relationship Agreement would deliver meaningful minority shareholder protections and provide important assurances regarding the Company’s continued operational and decision-making independence from its largest shareholder.” – Savannah Energy PLC Board
– “The proposed termination of the Buyback Agreement would preserve approximately £10.05 million of the Company’s cash resources… enhancing financial flexibility.” – Savannah Energy PLC Board
The arrangements pursuant to which the Company has agreed to terminate the Buyback Agreement and to enter into the Relationship Agreement, in connection with the intended share purchases by NIPCO and Andrew Knott, constitute related party transactions for the purposes of the AIM Rules for Companies.
The Company’s independent directors, being all of the directors other than Andrew Knott, consider, having consulted with Strand Hanson Limited, the Company’s nominated adviser, that the terms of these arrangements and the actions to be taken by the Company in connection therewith are fair and reasonable insofar as shareholders are concerned
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