LONDON: Savannah Energy PLC, a British independent energy company focused on African infrastructure, announced Friday that its subsidiary, Savannah Energy EA Limited, will sign a Share Purchase Agreement with Norfund to acquire the Norwegian fund’s 50.1% stake in Klinchenberg BV for up to $65.4 million.
The agreement, expected to be signed later Friday during a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa, marks Savannah’s entry into three major hydropower projects across East and Central Africa.
Klinchenberg BV, jointly owned by Norfund and British International Investment (BII), holds indirect interests in:
- Bujagali: A 255 MW run-of-river hydropower plant in Uganda, contributing 31% of the country’s electricity generation.
- Mpatamanga: A 361 MW reservoir-based hydropower project in Malawi, expected to double the nation’s installed capacity.
- Ruzizi III: A 206 MW cross-border hydropower project spanning Burundi, the Democratic Republic of the Congo, and Rwanda.
The transaction includes a $6.8 million deferred payment due three years post-completion and contingent payments tied to financial close milestones for Mpatamanga and Ruzizi III. Completion is expected no earlier than Q1 2026, with an effective economic date of Dec. 31, 2024.
Savannah plans to fund the acquisition through a $37.4 million debt facility arranged by an international bank and existing cash reserves.
“This investment reflects the UK’s commitment to sustainable development on the continent,” said Humphrey. “It supports clean energy and economic opportunities in the region.”
Andrew Knott, CEO of Savannah Energy, called the deal “the first of several transactions” planned in Africa’s power sector. “These projects are expected to benefit over 30 million people,” he said.
Klinchenberg reported net revenues of $17.8 million and post-tax income of $17.4 million for the year ending Dec. 31, 2024.