Trustco Group Holdings Limited (Trustco) shareholders on Tuesday approved a N$469-million (US$26 million) equity acquisition of additional shares in Legal Shield Holdings Limited (LSH).
The transaction involves acquiring 1,135 shares from Riskowitz Value Fund LP (RVF), increasing Trustco’s stake in LSH to 91.35%.
Trustco Deputy CEO, Quinton Z van Rooyen, said shareholder support reaffirms their belief in Namibia’s economic potential and their commitment to investing in the country’s property and insurance sectors.
“I would like to extend our sincere apologies to our shareholders for the protracted timeline caused by regulatory processes. Delays in implementing commercial transactions for any reason ultimately impact our ability to create and unlock shareholder value in a timely manner,” he said.
The transaction, valued at N$469 million (US$26 million), will be completed through the issuance of new Trustco shares to Riskowitz Value Fund LP (RVF), the current shareholder.
Trustco issued 400 million new shares to RVF at N$1.17 per share in two tranches of 200 million shares each.
The transaction, initially announced on 23 April 2024, underscores Trustco’s strategic focus on unlocking the significant potential of its real estate and insurance portfolio.
Van Rooyen noted that LSH’s assets include Trustco Insurance Limited, Trustco Life Limited and a prime real estate portfolio spanning over 2,473 sellable hectares (6,112 acres).
“The extensive land bank presents development opportunities for more than 26,000 mixed-use erven, providing meaningful solutions to Namibia’s acute shortage of serviced land. This real estate portfolio has demonstrated its value-generating prowess, generating cash in excess of N$934 million (US$52 million) since 2011,” he added.
Trustco Group Holdings Limited is a holding company headquartered in Windhoek, Namibia, that owns subsidiaries engaged in diverse business activities spanning the real estate, mining, insurance, micro-finance and education sectors.
Trustco’s ordinary shares are listed in the JSE under the symbol “TTO” and in the NSX under the symbol “TUC.”
Trustco’s American Depositary Shares are quoted on the OTCQX through its ADR programme under the symbol “TSCHY.”
