Savannah Energy PLC, has announced that its wholly owned subsid- iary, Savannah Energy EA Limited has signed a Share Purchase Agreement with Norfund, to acquire its cur- rent 50.1 per cent interest in Klinchenberg BV for the sum of US$65.4 million.
The agreement was signed on Friday during a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa marking Savannah’s entry into Uganda, Burun- di, the Democratic Repub- lic of Congo, Malawi and Rwanda. Klinchenberg is a joint venture company current- ly owned by Norfund with stakes amounting to 50.1 per cent and British Inter- national Investment with the stake of 49.9 per cent.
Klinchenberg has inter- ests in a portfolio of hy- dropower assets, namely: an indirect 13.6 per cent interest in the operating 255 MW Bujagali run-ofriver hydropower plant in Uganda; an indirect 12.3 MW Mpatamanga hydro- power development project in Malawi.
It also has an indirect 9.8 per cent interest in the 206 MW Ruzizi III hydro- power development proj- ect spanning Burundi, the Democratic Republic of the Congo and Rwanda.
The consideration in- cludes a US$6.8 million deferred cash element, payable three years post-completion of the transaction, and contin- gent payments in respect of Mpatamanga and Ruz- izi III payable upon finan- cial close of these projects.
