Trustco Group Holdings Limited (Trustco) says it plans to finalise the acquisition of an additional 11.35% stake in Legal Shield Holdings Limited (LSH) by the end of 2024.
The transaction, valued at N$468 million (US$27 million), will be completed through the issuance of new Trustco shares to Riskowitz Value Fund LP (RVF), the current shareholder.
Trustco will issue 400 million new shares to RVF at N$1.17 per share in two tranches of 200 million shares each.
“This acquisition aligns well with our growth strategy and allows us to take advantage of expected capital growth, improved macroeconomic liquidity, and increased buyer demand in Namibia’s real estate market. By expanding our property portfolio, we’re set to benefit from the country’s recovering property market following the pandemic,” said Trustco’s Deputy CEO Quinton Z van Rooyen.
He further explained that the acquisition will increase Trustco’s ownership of LSH to 91.35%, further strengthening its position in Namibia’s real estate and insurance sectors.
The deal includes valuable assets such as Trustco Insurance Limited, Trustco Life Limited, and a significant real estate portfolio, which consists of 2,473 hectares of saleable land across key developments like Elisenheim Lifestyle Estate, Lafrenz Industrial Park and Herboths.
The real estate portfolio has already generated over N$934 million (US$53 million) in cash since 2011, and Trustco expects further growth in Namibia’s recovering property market.
With a development pipeline spanning the next 25 years, the company is well-positioned to address the country’s severe shortage of serviced land for residential, commercial and industrial use.
“The growing presence of these industry titans in Namibia strengthens our confidence and reaffirms our strategy to expand our real estate holdings. Their investments signal strong prospects for the Namibian economy, creating an ideal environment for Trustco to capitalise on these opportunities,” he said.
Trustco has submitted a circular detailing the transaction to the Johannesburg Stock Exchange (JSE) for review.
Once approved, this comprehensive document will be distributed to all shareholders, providing full details on the proposed acquisition.
Trustco Group Holdings Ltd is an investment entity headquartered in Windhoek, which manages a diverse portfolio of investments spanning the insurance, real estate, commercial banking, micro-finance, education and mining sectors.
