Savannah Energy Plc has announced that its fully owned subsidiary, Savannah Energy EA Limited, has entered into a share purchase agreement with Norfund, the Norwegian investment fund dedicated to developing countries. This agreement involves acquiring Norfund’s entire 50.1% stake in Klinchenberg BV for a total consideration of up to $65.4 million.
The agreement was formalized yesterday in a ceremony attended by John Humphrey, the Trade Commissioner for Africa. This milestone marks Savannah Energy’s strategic expansion into key East and Central African markets, including Uganda, Burundi, the Democratic Republic of Congo, Malawi, and Rwanda.
Klinchenberg BV is a joint venture currently co-owned by Norfund (50.1%) and British International Investment (49.9%), the UK’s development finance institution.
The company holds indirect stakes in several hydropower projects: a 13.6% interest in the operational 255 MW Bujagali run-of-river hydropower plant in Uganda; a 12.3% interest in the 361 MW Mpatamanga hydropower project under development in Malawi; and a 9.8% interest in the 206 MW Ruzizi III hydropower project, which spans Burundi, the Democratic Republic of Congo, and Rwanda. These percentages reflect the expected net share attributable to Savannah Energy.
The purchase price includes a deferred payment of $6.8 million, scheduled three years after the transaction’s completion, alongside contingent payments linked to the financial close of the Mpatamanga and Ruzizi III projects. The deal is subject to standard post-completion adjustments and is anticipated to finalize no earlier than the first quarter of 2026.
The share purchase agreement carries an economic effective date of December 31, 2024. Savannah Energy EA plans to finance the acquisition through a new $37.4 million debt facility arranged with a prominent international bank, supplemented by the company’s existing cash reserves.
John Humphrey, Trade Commissioner for Africa, commented, “It is encouraging to witness Savannah Energy Plc, a UK-based investor, committing to these vital renewable energy initiatives across East and Central Africa. This investment underscores the UK’s dedication to sustainable development on the continent and bolsters projects that will provide clean energy and africa/” title=”Apex Network Aims to Revolutionize Crypto-to-Cash Transactions Across …”>foster economic growth in the region.”
Andrew Knott, CEO of Savannah Energy, stated, “We are thrilled to announce our forthcoming involvement in the Bujagali, Mpatamanga, and Ruzizi III hydropower projects through acquiring Norfund’s stake in Klinchenberg. Bujagali stands as a premier East African power facility with a proven 13-year track record of reliable operation and payments.”
He added, “Mpatamanga and Ruzizi III are advanced-stage projects poised to deliver competitively priced electricity to over 30 million people across their respective countries. Each project benefits from strong partnerships, which we are eager to join.”
Knott further explained, “This transaction represents the first of multiple deals we anticipate announcing within the next two years in the African energy sector. It lays a solid foundation for both organic and inorganic growth across Uganda, Burundi, the Democratic Republic of Congo, Malawi, and Rwanda.”
