- Savannah Energy PLC will acquire Norfund’s 50.1% stake in Klinchenberg BV for up to US$65.4 million, securing interests in major hydropower projects in five African countries.
- The deal, expected to close by Q1 2026, marks Savannah’s entry into East and Central Africa’s renewable energy market.
Savannah Energy PLC has signed a Share Purchase Agreement (SPA) to acquire significant stakes in three major hydropower projects across East and Central Africa, marking its entry into the region’s renewable power market.
Through its subsidiary, Savannah Energy EA Limited, the British independent energy company agreed to purchase Norfund’s 50.1% stake in Klinchenberg BV for up to US$65.4 million. John Humphrey, His Majesty’s Trade Commissioner for Africa, attended the signing ceremony.
Meanwhile, the deal gives Savannah Energy indirect interests of 13.6% in Uganda’s 255 MW Bujagali plant, 12.3% in Malawi’s 361 MW Mpatamanga project, and 9.8% in the 206 MW Ruzizi III project spanning Burundi, the DRC, and Rwanda. Klinchenberg’s other shareholder, British International Investment, retains its 49.9% stake.
Savannah structured the transaction with a US$6.8 million deferred payment due three years after completion and additional contingent payments linked to the financial close of Mpatamanga and Ruzizi III. Subject to approvals, the company expects to close the deal no earlier than Q1 2026, with an effective date of December 31, 2024.
Furthermore, Savannah secured a US$37.4 million debt facility from a leading international bank to finance the acquisition and use existing cash reserves. Klinchenberg posted US$17.8 million in net revenues, US$17.4 million in post-tax income, and US$196.9 million in assets in 2024.
John Humphrey also praised the transaction as proof of the UK’s commitment to Africa’s sustainable development, highlighting its potential to deliver clean energy and economic opportunities.
Savannah CEO Andrew Knott called the deal a strategic milestone. He said Bujagali’s proven track record and advanced-stage Mpatamanga and Ruzizi III projects could provide more than 30 million people with competitively priced power. He added that the acquisition sets a strong platform for Savannah’s growth in Africa’s power sector, with more deals expected over the next two years.