Trustco Group Holdings Limited (Trustco) has revealed plans to convert N$4.4 billion (US$235 million) of debt into equity.
The conversion is projected to bolster Trustco’s net asset value by approximately N$1.5 billion (US$79 million).
Trustco Deputy CEO Quinton van Rooyen said the debt owed to Next Capital and Quinton van Rooyen will be swapped for new ordinary Trustco shares at a rate of N$1.17 (USD 0.06) per share, marking a substantial 350% premium over Trustco’s 90-Day Volume Weighted Average Price.
“This pricing aligns with the Company’s audited net asset value per share as of 31 August 2023, and is subject to obtaining shareholder and regulatory approvals, including an independent fairness opinion to ensure adherence to best governance practices,” he said.
The transaction follows the previously announced agreement with Riskowitz Value Fund, forming part of a planned US$100 million capital raise in the US markets, which reinforces Trustco’s growth trajectory and investment strategy.
The CEO said the infusion of capital from two long standing shareholders, including the founding family, underscores confidence in the company’s approach.
Meanwhile, Trustco is also expanding its ownership in the insurance and real estate sectors in Namibia.
“The planned acquisition of an additional 11.35% stake in Legal Shield Holdings will raise Trustco’s ownership to 91.35%, involving a N$468 million (US$25 million) equity transaction,” van Rooyen said.
Simultaneously, Trustco’s mining investment in West Africa has unveiled promising diamond resource estimates, assessed by an independent Competent Person.
This comes as the Meya River Kimberlite Dyke, with an estimated in-situ value of US$763 million, represents less than 5% of the total combined strike lengths of the Kimberlite domains within Meya Mining’s licensed Area.
“This recapitalisation is a pivotal step towards realizing our growth ambitions and complementing our ongoing fundraising in the US markets, with a deleverage balance sheet, Trustco will be well-positioned to attract further strategic investors and generate long-term value for our shareholders,” said van Rooyen.
