Capricorn Group Limited has made a binding offer to acquire an initial 81.6% stake in South African specialist asset finance company Centrafin, in a transaction valuing the business at R788.3 million.
The Namibia Securities Exchnage-listed financial services group will acquire the stake from Fonzosys, part of the Alviva Group, and will have the option to increase its ownership to 100% over a five-year period.
The proposed acquisition marks Capricorn Group’s planned entry into South Africa through an established operating financial services business, expanding its footprint beyond Namibia and Botswana.
The R788.3 million enterprise value remains subject to the finalisation of Centrafin’s audited financial results.
Centrafin operates in South Africa’s specialist equipment rental and asset financing market and has developed an asset finance book of about R3 billion, spanning a range of asset classes.
Capricorn Group Chief Executive Officer David Nuyoma said the acquisition would support the group’s strategy to diversify its revenue streams and expand its regional financial services operations.
“South Africa is an important market in our growth ambitions, and Centrafin presents us with the opportunity to enter this market through an established operating financial services business,” Nuyoma said.
“It will also introduce specialist asset finance and non-bank lending capabilities to the sectors in which we participate, further diversifying the interests of our Group.”
Capricorn Group said it conducted due diligence covering Centrafin’s financial, risk, legal, tax, operational, regulatory, human capital, brand and reputational aspects before making the binding offer.
Centrafin Managing Director Jenny Gill said the company had grown from a technology equipment rental business into a diversified asset finance house.
“Over the years, Centrafin has successfully evolved from a technology equipment rental business into a diversified asset finance house with a R3 billion book spanning a broad range of asset classes,” Gill said.
Capricorn Group intends to retain the Centrafin brand following the acquisition, while existing customer teams and service channels will remain in place as the transaction progresses.
The binding offer does not mean the acquisition has been completed.
The transaction remains subject to the negotiation and execution of definitive agreements, approval from the Bank of Namibia and South African Competition Commission, and compliance with applicable Namibia Securities Exchange requirements.
Other conditions precedent must be fulfilled or waived by 31 January 2027, unless the parties agree to extend the deadline.
Capricorn Group currently operates Bank Windhoek, Bank Gaborone, Capricorn Asset Management, Entrepo and Peo Finance, with operations concentrated in Namibia and Botswana.
