REG - Savannah Energy Plc - Savannah to Sign SPA for East Africa Projects

Savannah EnergyAnnouncement

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RNS Number : 9838Z  Savannah Energy Plc  19 September 2025

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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