Savannah Energy Plc has said, its wholly owned subsidiary, Savannah Energy EA Limited has signed a share purchase agreement with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1 per cent interest in Klinchenberg BV for a total consideration of up to $65.4 million.
The SPA was signed yesterday during a ceremony attended by the Trade Commissioner for Africa, John Humphrey. The signing marks Savannah’s entry into Uganda, Burundi, the Democratic Republic of Congo, Malawi and Rwanda.
Klinchenberg is a joint venture company currently owned by Norfund (50.1 per cent) and British International Investment (49.9 per cent), the UK’s development finance institution.
Klinchenberg has interests in a portfolio of hydropower assets, namely: an indirect 13.6 per cent interest in the operating 255 MW Bujagali run-of-river hydropower plant in Uganda; an indirect 12.3 per cent interest in the 361 MW Mpatamanga hydropower development project in Malawi; and an indirect 9.8 per cent interest in the 206 MW Ruzizi III hydropower development project spanning Burundi, the Democratic Republic of the Congo and Rwanda. All interests are presented on an expected net to Savannah basis.
The consideration includes a $6.8 million deferred cash element, payable three years post-completion of the Transaction, and contingent payments in respect of Mpatamanga and Ruzizi III payable upon financial close of these projects. The Transaction is subject to customary adjustments upon completion and is expected to complete no earlier than Q1 2026.
The SPA has an economic effective date of 31 December 2024. The Consideration is expected to be funded by Savannah Energy EA through a new $37.4 million debt facility, arranged by a leading international bank, and the existing cash resources of the company.
Trade Commissioner for Africa, John Humphrey said: “I am delighted to see Savannah Energy Plc, a UK investor, taking a stake in these important renewable energy projects across East and Central Africa. This investment reflects the UK’s commitment to sustainable development on the continent and supports the success of projects that will deliver clean energy and economic opportunities in the region.”
The chief executive officer, Savannah, Andrew Knott said, “we are delighted to be announcing our planned entry into the Bujagali, Mpatamanga and Ruzizi III hydropower projects through the acquisition of Norfund’s interest in Klinchenberg. Bujagali is a flagship East African power plant with an excellent 13-year operating and payment track record.
“Mpatamanga and Ruzizi III are advanced-stage developments which are expected to generate highly competitively priced electricity in their respective countries for the benefit of over 30 million people. Each project has a strong partnership group which we are excited to join.”
He explained that, “the transaction marks the first of several transactions that we expect to announce over the course of the next 24 months in the African power space and provides us with a basis for further organic and inorganic growth in each of Uganda, Burundi, the Democratic Republic of Congo, Malawi and Rwanda.”
