Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, has announced that its wholly-owned subsidiary, Savannah Energy EA Limited, has signed a Share Purchase Agreement (SPA) with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1 percent interest in Klinchenberg BV for a total consideration of up to US$65.4 million.
The SPA was signed this morning during a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa.
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%) and British International Investment (49.9%), the UK’s development finance institution.
It has interests in a portfolio of hydropower assets, namely an indirect 13.6 percent interest in the operating 255 MW Bujagali run-of-river hydropower plant in Uganda; an indirect 12.3 perecent interest in the 361MW Mpatamanga hydropower development project in Malawi; and an indirect 9.8 percent interest in the 206MW 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 US$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 US$37.4 million debt facility, arranged by a leading international bank, and the existing cash resources of the company.
The transaction constitutes a Substantial Transaction under AIM Rule 12. Accordingly, the following information is included in accordance with the disclosure requirements of Schedule Four to the AIM Rules for Companies.
For the financial year ended 31 December 2024, Klinchenberg reported audited net revenues of US$17.8 million, an income after tax of US$17.4 million, and total assets of US$196.9 million.
