Savannah Energy Plc, the British independent energy company, says Savannah Energy EA Limited, its wholly owned subsidiary, has signed a share purchase agreement (SPA) with Norfund, a Norwegian investment fund for developing countries, to acquire its current 50.1 percent interest in Klinchenberg BV.
The SPA, according to a statement, was signed during a ceremony attended by John Humphrey, the United Kingdom’s trade commissioner for Africa.
Savannah said the acquisition involves a cost consideration of up to $65.4 million and comes six months after the organisation acquired Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC).
The British firm operates upstream and midstream gas assets in Nigeria, including Accugas, Stubb Creek, and Uquo — supplying gas to approximately 17 percent of Nigeria’s thermal power generation capacity.
Speaking on the latest acquisition, the energy firm said the deal marks its 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,” the statement reads.
“Klinchenberg 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.
“The Transaction is subject to customary adjustments upon completion and is expected to complete (sic) no earlier than Q1 2026. The SPA has an economic effective date of 31 December 2024.”
According to the company, the deal is expected to be funded by Savannah Energy EA through a new $37.4 million debt facility, arranged by a leading international bank, and its existing cash resources.
“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,” the statement further reads.
Commenting on the transaction, Humphrey said the 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”.
On his part, Andrew Knott, chief executive officer (CEO) of Savannah, expressed delight for the planned entry into “the Bujagali, Mpatamanga and Ruzizi III hydropower projects through the acquisition of Norfund’s interest in Klinchenberg”.
He said the transaction marks the first of several transactions that the company expect to announce over the course of the next 24 months in the African power space.
