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Savannah Energy PLC on Friday said subsidiary Savannah Energy EA Ltd has agreed to buy a 50.1% stake in Klinchenberg BV for a total of up to $65.4 million. The energy company focused on projects in Africa said the share purchase agreement was to be signed with Norfund, the Norwegian investment fund for developing countries. Klinchenberg is a joint venture firm currently owned by Norfund and British International Investment, the UK’s development finance institution. The venture owns a portfolio of hydropower assets, including an indirect 13.6% interest in the Bujagali run-of-river plant in Uganda, an indirect 12.3% stake in the Mpatamanga development project in Malawi and an indirect 9.8% holding in the Ruzizi III development project spanning Burundi, the Democratic Republic of the Congo and Rwanda. The consideration amount includes a $6.8 million deferred cash element, which is payable three years after the deal completes, and contingent payments related to Mpatamanga and Ruzizi III, which are payable upon the financial close the projects. Savannah Energy expects to fund the purchase through a new $37.4 million debt facility, arranged by an unnamed ‘leading international bank’, and its existing cash resources. The company anticipates the acquisition completing no earlier than the first quarter of 2026. ‘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,’ said Savannah Chief Executive Officer Andrew Knott. ‘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 the Congo, Malawi and Rwanda.’ Shares in Savannah Energy closed down 3.1% at 4.36 pence in London on Friday. The stock remains up 7.7% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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