19 September 2025
Savannah Energy PLC
("Savannah" or "the Company")
SPA to be Signed Today to Acquire Interests in Three East African Power Projects, Marking Savannah's Entry into Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, announces that its wholly owned subsidiary, Savannah Energy EA Limited ("Savannah Energy EA"), will imminently be signing a Share Purchase Agreement ("SPA") with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1% interest in Klinchenberg BV ("Klinchenberg") for a total consideration of up to US$65.4 million (the "Consideration" and collectively "the Transaction"). The SPA is expected to be signed later this morning during a ceremony to be attended by John Humphrey, His Majesty's Trade Commissioner for Africa.
Klinchenberg is a joint venture company currently owned by Norfund (50.1%) and British International Investment ("BII") (49.9%), the UK's development finance institution. Klinchenberg has interests in a portfolio of hydropower assets, as set out below: 1
· an indirect 13.6% interest in the operating 255 MW Bujagali run-of-river hydropower plant ("Bujagali") in Uganda;
· an indirect 12.3% interest in the 361 MW Mpatamanga hydropower development project ("Mpatamanga") in Malawi; and
· an indirect 9.8% interest in the 206 MW Ruzizi III hydropower development project ("Ruzizi III") spanning Burundi, the Democratic Republic of the Congo (the "DRC") and Rwanda.
Note: All interests 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 no earlier than Q1 2026. The SPA has an economic effective date of 31 December 2024. 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.
About Bujagali
Located on the Victoria Nile in eastern Uganda, Bujagali is a 255 MW run-of-river hydropower plant, commissioned in 2012, which contributes approximately 31% of Uganda's effective electricity generation capacity, producing approximately 1,490 GWh of power annually. It benefits from a US dollar-denominated power purchase agreement with the Uganda Electricity Transmission Company Limited, Uganda's principal power transmission utility, maturing in 2042.
Project partners in Bujagali include a subsidiary of TotalEnergies (the French energy supermajor), BII, AKDN (the Aga Khan Fund for Economic Development), the International Finance Corporation (the "IFC", a member of the World Bank Group), DEG (the Germany-owned investment company), Jubilee Holdings Limited (the East African financial services conglomerate) and the Government of Uganda.
For more information on Bujagali see: https://www.bujagali-energy.com
About Mpatamanga
Located on the Shire River in southern Malawi, the Mpatamanga hydropower project is a planned 361 MW traditional reservoir power plant. Mpatamanga is designed to double Malawi's current installed generation capacity and materially reduce dependence on diesel-fired generation. Financial close is targeted for 2026, with the project expected to be financed through a combination of concessional and commercial debt alongside equity contributions from the sponsors, underpinned by World Bank guarantee structures. Once operational, Mpatamanga is expected to deliver robust cash flows through long-term offtake agreements with the Government of Malawi and a US dollar -linked tariff.
Project partners in Mpatamanga include the IFC, EDF (the French utility major), BII, a subsidiary of TotalEnergies and the Government of Malawi.
For more information on Mpatamanga see: https://www.mpatamangahydro.com
About Ruzizi III
Located on the Ruzizi River between Burundi, the DRC and Rwanda, the Ruzizi III hydropower project is a planned 206 MW run-of-river power plant. The project is designed to supply electricity to Burundi, the DRC and Rwanda under long-term, government-backed, take-or-pay power purchase agreements, providing predictable US dollar-denominated revenues. Once operational, Ruzizi III is expected to nearly double Burundi's electricity generation capacity, increase Rwanda's installed capacity by approximately 30%, and deliver much-needed reliable baseload power to eastern DRC. Ruzizi III is expected to reach financial close in 2026, supported by a multi-lateral financing package with participation from the World Bank and other development finance institutions.
Project partners in Ruzizi III include a subsidiary of TotalEnergies, BII, AKDN, the IFC, DEG and Energie des Grands Lacs (a specialised regional energy body fostering cross-border economic growth in the Great Lakes region).
For more information on Ruzizi III see: https://ruzizi3.com
AIM Rule 12 / Schedule Four Disclosure
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.
For the financial year ended 31 December 2024, Klinchenberg reported audited net revenues of US$17.8 million, income after tax of US$17.4 million, and total assets of US$196.9 million.
John Humphrey, His Majesty's Trade Commissioner for Africa, said:
"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."
Andrew Knott, CEO, Savannah, said:
"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 the 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."
For further information, please refer to the Company's website www.savannah-energy.com or contact:
Savannah Energy +44 (0) 20 3817 9844
Andrew Knott, CEO
Nick Beattie, CFO
Sally Marshak, Head of IR & Communications
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
James Spinney
Ritchie Balmer
Rob Patrick
Cavendish Capital Markets Ltd (Joint Broker) +44 (0) 20 7220 0500
Derrick Lee
Tim Redfern
Panmure Liberum Limited (Joint Broker) +44 (0) 20 3100 2000
Scott Mathieson
James Sinclair-Ford
Camarco +44 (0) 20 3757 4983
Billy Clegg
Owen Roberts
Violet Wilson
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.
About Savannah Energy:
Savannah Energy PLC is a British independent energy company focused around the delivery of Projects that Matter in Africa.
About Run-of-River and Traditional Reservoir Hydropower Projects:
A run-of-river hydropower project generates electricity by channelling part of a river's natural flow through turbines without the need for a large reservoir, minimising environmental impact and allowing the river to follow its natural course. In contrast, a traditional reservoir hydropower project relies on a dam to store significant volumes of water, creating a reservoir that can be released as needed to produce power and manage supply.
Footnotes
1. Prior to completion of the Transaction, it is expected that Klinchenberg will be restructured, such that Norfund will hold 100% of Klinchenberg and BII's indirect interests in Bujagali, Mpatamanga and Ruzizi will be moved to a new vehicle. At completion of the Transaction, Savannah is, therefore, expected to acquire 100% of Klinchenberg.
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