NEWS

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, 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:

• 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.