Capricorn Group says it plans to increase its shareholding in Paratus Telecom, citing great growth potential by the telecommunications firm.
The Namibian Stock Exchange-listed company currently has a 31% shareholding in the telco and looking to increase it to 36% later in the year.
This will be an increase from the 30% the Group held as of 2019, which it acquired for N$252 million at the time.
“We own a significant portion of Paratus already, thus considering their business dynamic and approach to delivering services and telecommunications, we see them as a potential for further investments, and also for us to have additional capabilities outside Namibia,” Capricorn Group Chief Executive Officer (CEO) David Nuuyoma said.
“Paratus is known mainly locally, but it is bigger outside than what we see. Hence, they are a key stakeholder and regard them as part of the Capricorn Group, as they endeavour further in providing cutting-edge solutions. Our resolution is to increase shareholding in due course.”
Paratus Namibia is part of the Paratus Group, which is the largest privately owned pan-African network operator.
Paratus offers both business and private residences various internet access technologies such as fiber, microwave, V-SAT, as well as fixed and mobile LTE.
In addition, Paratus has highly skilled operational teams in seven African countries – Angola, Botswana, DRC, Mozambique, Namibia, South Africa, and Zambia.
The group’s extended network provides a satellite connectivity-focused service for Africa and also connects more than 37 African countries through a distributed reseller network across the continent.
Nuyoma made these remarks during a meet and greet session with the media since joining the Group recently. He retired from the Government Institution Pension Fund (GIPF) having served 10 years.
“It is more like I am still carrying out a similar environment as that of GIPF as I feel like I stepped into a house next door. It is fascinating and I am surprised because of familiar concepts. In a nutshell, it’s very good here, I have blended well perhaps due to a smooth onboarding by the team, EXCO, the Board and my predecessor,” briefly said Nujoma as he narrated the journey of his first weeks.
“So I am looking forward to adding value to this organisation, as I serve as the superconduct of this institution making sure all our subsidiaries are performing well and ensuring that there is harmony in this conglomerate as an overseer of all the Managing Directors. So far it is very good.”
Nuyoma takeover at a time that, Capricorn Group achieved solid results with profit after tax for the six months ended 31 December 2023, increasing by 18.5% to N$827.6 million, compared to N$698.2 million reported in the prior year.
In a report released by the Group in February, profits increased by 19.4% in earnings per share to 152.4 cents, while annualised return on equity at half year increased from 16.6% to 16.8% year-on-year.
The Group further created a value of N$2.42 billion during the six months ended 31 December 2023, with employees accounting for N$563 million, government through taxes N$574 million, ordinary shareholders N$314 million, N$515 million towards suppliers and N$19.8 million ploughed into the communities, including N$438 million on value retained for future expansion.
Furthermore, Capricorn Group experienced a noteworthy 12% year-on-year increase in net interest income, driven by higher interest rates, and an 8.5% year-on-year growth in the loan book.
Capricorn Group, a Namibian-listed company, acts as an investment holding company and provides consulting and support services to other group companies.
Its primary investments consist of 100% shareholdings in Bank Windhoek Ltd (BW), Namib Bou (Pty) Ltd, Capricorn Capital (Pty) Ltd, Capricorn Investment Group (Pty) Ltd, and Capricorn Hofmeyer Property (Pty) Ltd.
The company holds an 84.8% share in Capricorn Investment Holdings (Botswana) Ltd, which in turn holds 100% of the share capital in Bank Gaborone Ltd (BG) and Peo Finance (Pty) Ltd.
It also holds a 95.7% stake in Capricorn Asset Management (Pty) Ltd and Capricorn Unit Trust Management Company Ltd, a 55.5% share in Entrepo Holdings (Pty) Ltd (Entrepo), which owns 100% of Entrepo Life Ltd and Entrepo Finance (Pty) Ltd, a 29.5% stake in Sanlam Namibia Holdings (Pty) Ltd, a 28% stake in Santam Namibia Ltd, and an over 30% stake in Paratus Group Holdings Ltd.
