Trustco Group Holdings, a Namibia-headquartered company with operations in insurance, investments, resources, and banking and finance, has received a N$1.4-billion capitalisation offer from its founder shareholders, Dr Quinton van Rooyen and Next Capital, the investment vehicle of the Van Rooyen family.
The offer entails that Next Capital will have an option to convert its N$1.4 billion loan into 1,050,000,000 (one billion and fifty million) new ordinary Trustco shares at a fixed price of N$1.41 per share. The loan will stop accruing interest from the date of shareholder approval.
The capitalisation offer is priced at a substantial premium to the current share price of 50 cents per share. If the entire loan is converted, Next’s shareholding in Trustco will increase to 69.8% of issued shares.
The offer is subject to shareholder approval, as well as a fairness opinion by an independent expert, in compliance with JSE Listings Requirements. The company will also need to increase its authorised share capital from 2.5 billion shares to 3.5 billion shares.
The capitalisation offer is seen as a positive development for Trustco, as it will help to improve the company’s financial position and provide it with a stronger foundation for future growth.
Trustco Deputy CEO, Quinton Z van Rooyen, said the offer demonstrates the founder shareholders’ confidence in the company’s vision and strategy.
“We appreciate their foresight in providing us with this opportunity to enhance shareholder value and pursue new opportunities in our markets,” he said.
The capitalisation offer is also seen as a vote of confidence in the Namibian economy. Trustco is a major employer in the country, and the offer is seen as a sign that the founder shareholders believe in the long-term prospects of the Namibian economy.
The capitalisation offer is expected to be completed in the fourth quarter of 2023.
