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LONDON - Savannah Energy PLC announced it will sign a Share Purchase Agreement today to acquire Norfund’s 50.1% interest in Klinchenberg BV for up to $65.4 million, marking the British energy company’s entry into five East African countries.
The acquisition gives Savannah indirect stakes in three hydropower projects: the operational 255 MW Bujagali plant in Uganda (13.6% interest), the 361 MW Mpatamanga development project in Malawi (12.3%), and the 206 MW Ruzizi III development project spanning Burundi, Democratic Republic of the Congo, and Rwanda (9.8%).
The transaction includes a $6.8 million deferred payment due three years after completion, plus contingent payments upon financial close of the Mpatamanga and Ruzizi III projects. Savannah expects to fund the purchase through a $37.4 million debt facility and existing cash resources.
Completion is anticipated no earlier than Q1 2026, with an economic effective date of December 31, 2024.
The Bujagali run-of-river plant, commissioned in 2012, contributes approximately 31% of Uganda’s effective electricity generation capacity and operates under a dollar-denominated power purchase agreement extending to 2042.
Both development projects are targeting financial close in 2026. Mpatamanga is designed to double Malawi’s generation capacity, while Ruzizi III aims to significantly increase electricity supply in Burundi, eastern DRC, and Rwanda.
Project partners across these ventures include TotalEnergies, British International Investment, the International Finance Corporation, and the respective national governments.
For the financial year ended December 31, 2024, Klinchenberg reported audited net revenues of $17.8 million, income after tax of $17.4 million, and total assets of $196.9 million.
According to the press release, Savannah Energy CEO Andrew Knott described this as "the first of several transactions that we expect to announce over the course of the next 24 months in the African power space."
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