United States fund Riskowitz Value Fund LP (RVF) is set to make a cash investment of up to N$950 million into Trustco Group, solidifying its position as a key anchor foreign investor in the listed company.
The capital infusion according to Trustco, will grant it unparalleled financial strength to capitalize on new opportunities and fortify existing investments in Namibia.
“These transactions represent an opportunity to align our interests and leverage Trustco’s expansion. They signify shareholder confidence in Trustco’s vision, high value assets and potential for sustained growth across its diverse investment portfolio. RVF is committed to supporting dynamic enterprises in emerging markets and leveraging opportunities that drive mutual success,” said RVF’s Sean Riskowitz.
Additionally, Next Capital (Pty) Ltd and entities affiliated with Trustco’s founder, Dr Quinton van Rooyen, have made an offer to convert debt in the amount of N$ 1.48 billion into new ordinary shares in the group.
“This transformation of debt into equity is a proactive approach to debt management that unlocks free cash flows for future investment, frees up capital for dividends in the medium term, and more than doubles Trustco’s net asset value. The conversion option will optimise Trustco’s capital structure and align the interests of founder shareholders with minority holders and key debtholders,” the company said.
Trustco Deputy CEO, Quinton Z van Rooyen said the moves will allow Trustco to create sustainable value for its shareholders, while solidifying its position in the market.
“These shareholder actions allow Trustco to convert national potential into investment opportunities, shareholder returns, and reinforces our progressive trajectory and diversification strategy. We will channel this investment into innovations that empower more coinvestors to secure their financial futures and reward shareholders and Namibians in general,” he said.
Trustco is also in the process of finalizing the acquisition of an additional 11.35% stake in Legal Shield Holdings Ltd to expand its investments in Namibia’s insurance and real estate sectors.
Trustco currently holds 80% in the entity and will increase its stake to 91.35%.
“The transaction provides Trustco greater exposure to the strong growth potential in these key industries as Namibia’s economy expands and increases Trustco’s net asset value.”
Trustco Group Holdings Ltd is a Namibia based investment entity , which manages a diverse portfolio of investments spanning the insurance, real estate, commercial banking, micro-finance, education and mining sectors.
