- Safiu Kehinde
British independent energy company, Savannah Energy PLC, has announced the acquisition of 50.1% stake of Norwegian investment Fund’ (Norfund) by its subsidiary, Savannah Energy EA Limited.
This was disclosed in a statement issued by the company and made available to NPO Reports in Saturday.
According to the state, Savannah had signed a Share Purchase Agreement with Norfund, which included there acquisition of its current 50.1% interest in Klinchenberg BV for a total consideration of up to US$65.4 million.
The SPA was signed on Friday 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.
According to the statement, 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% interest in the operating 255 MW Bujagali run-of-river hydropower plant in Uganda; an indirect 12.3% interest in the 361 MW Mpatamanga hydropower development project in Malawi; and an indirect 9.8% 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 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.
Also, 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.
Meanwhile, the Transaction is subject to customary adjustments upon completion and is expected to complete no earlier than Q1 2026.
It constitutes a Substantial Transaction under AIM Rule 12.
The agreement has an economic effective date of 31 December 2024.
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.
In his remark, John Humphrey, His Majesty’s Trade Commissioner for Africa, expressed his delight over the agreement.
“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.” He said.
Andrew Knott, Savannah’s Chief Executive Officer noted that each project has a strong partnership group which the company is excited to join.
“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.
“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.
“I would like to thank my incredibly dedicated and passionate colleagues who have worked tirelessly to enable this Transaction to happen and look forward to updating investors on the progress made on each of these large-scale projects over the course of the coming months and years.” He said.