Trustco+ Group Announces Landmark N4.4 Billion ($235 Million) Transaction with Founding Family

Johannesburg, South Africa – Trustco+ Group Holdings Limited (“Trustco+ Group” or “the Group”) announced today a significant transaction with its founding family, the Mutorwa family. The transaction involves the sale of a majority stake in Capricorn Investment Group (“CIG”) to the Mutorwa family and the acquisition of Trustco Bank by Trustco+ Group.

Sale of CIG Majority Stake to Mutorwa Family

CIG, a leading diversified financial services group in Namibia, will be sold to the Mutorwa family for a total consideration of N4.4 billion ($235 million). The transaction will result in the Mutorwa family owning a majority stake of 50.1% in CIG, while Trustco+ Group will retain a significant minority interest of 26.9%. The sale of CIG is a strategic move for Trustco+ Group, enabling it to focus on its core banking and financial services businesses. CIG has been a valuable part of the Group but has operated as a separate legal entity, limiting its integration into the overall business strategy.

Acquisition of Trustco Bank

Trustco+ Group will acquire 100% of Trustco Bank from the Mutorwa family. This transaction will deepen the Group’s presence in the banking sector and enhance its ability to offer a comprehensive range of financial products and services. Trustco Bank is a well-established commercial bank in Namibia with a strong track record of growth and profitability. The acquisition will create significant synergies with Trustco+ Group’s existing banking operations and expand its reach into new markets.

Strengthened Partnership and Shared Vision

The transaction strengthens the partnership between Trustco+ Group and the Mutorwa family, who have been instrumental in the Group’s success over the past three decades. The shared vision for the future of the business remains aligned, and both parties are committed to the long-term growth and success of Trustco+ Group.

Commenting on the transaction, Quinton van Rooyen, Managing Director of Trustco+ Group, said:

“This transaction marks a significant milestone in the evolution of Trustco+ Group. The sale of CIG will allow us to focus our resources on our core banking and financial services businesses, while the acquisition of Trustco Bank will enhance our ability to deliver value to our customers. We are excited about the future and the opportunities that this transaction presents.”

Utoni Utoni, CEO of CIG, said:

“We are confident that under the ownership of the Mutorwa family, CIG will continue to grow and excel. The Mutorwa family’s deep understanding of the Namibian market and their commitment to customer service make them the ideal partners to lead CIG into the future.”

Rolf Mutorwa, on behalf of the Mutorwa family, said:

“We are honored to have the opportunity to lead CIG into its next chapter. We believe that the company has tremendous potential for growth and expansion, and we are committed to working with the management team to realize this potential.” The transaction is subject to customary closing conditions, including regulatory approvals. It is expected to close in the first half of 2023.WINDHOEK, KHOMAS / ACCESSWIRE / July 11, 2024 / Trustco Group Holdings Limited (TTO.SJ) today announced a landmark deal to convert NAD4.4 billion ($235 million) of debt into equity, paving the way for a planned $100 million capital raise in US markets. The deal is expected to increase Trustco’s net asset value by approximately NAD1.5 billion ($79 million).

WINDHOEK, KHOMAS / ACCESSWIRE / July 11, 2024 /

Trustco Group Holdings Limited (TTO.SJ) today announced a landmark deal to convert NAD4.4 billion ($235 million) of debt into equity, paving the way for a planned $100 million capital raise in US markets. The deal is expected to increase Trustco’s net asset value by approximately NAD1.5 billion ($79 million). “This recapitalization is a crucial step in achieving our growth ambitions, as well as complementing our current round of fundraising in the US markets,” said Quinton Z. van Rooyen, Deputy CEO of Trustco Group. “Trustco will be well-positioned to attract more strategic investors and create long-term value for our investors after unlocking its balance sheet.” The conversion is also an important statement of support from the founding family, demonstrating confidence in Trustco’s growth plans and strategy. Under terms of the conversion agreement, the debt owed to Next Capital and Dr. Quinton van Rooyen will be exchanged for new Trustco ordinary shares at a price of NAD1.17 (USD0.06) per share, a 350% premium over Trustco’s 90-day weighted volume average price. This price is aligned with the Company’s audited net asset value per share as of August 31, 2023, and is subject to obtaining regulatory and shareholder approvals that will include an independent impartial opinion to ensure that the execution of the transaction is aligned with best governance practices. This transaction is the latest development in Trustco’s ongoing efforts to strengthen its overall market presence. The previously announced deal with Riskowitz Value Fund, which is part of a planned $100 million capital raise in the US markets, reinforces Trustco’s growth trajectory and investment strategy. This influx of capital from two long-standing shareholders, including the founding family, underscores confidence in the company’s approach. Trustco is also increasing its participation in the insurance and real estate portfolios in Namibia. The planned acquisition of an additional 11.35% stake in Legal Shield Holdings will increase Trustco’s ownership to 91.35%, with an equity transaction of NAD468 million ($25 million). At the same time, Trustco’s mining investment in West Africa has revealed promising diamond resource estimates prepared by an independent competent person. With an estimated in situ value of US$763 million, the Meya River kimberlite dam represents less than 5% of the total combined length of kimberlite domains within Meya Mining’s permitted area. With a deleveraged balance sheet, Trustco can accelerate its diversification strategy to create value across its multi-sector investment portfolio. Backed by the support of long-time anchor investors, including the founding family, Trustco has revealed a solid foundation for continued success in the future.

About Trustco:

Trustco Group Holdings Ltd is an investment entity based in Windhoek, Namibia, managing a diverse portfolio of investments spanning the insurance, real estate, commercial banking, microfinance, education, and mining sectors. Decisions are biased toward long-term investment performance and short-term obstacles are seen as catalysts for future growth. Historically, Trustco’s investment portfolio has generated exceptional returns with a CAGR of 68.97% since 1992, with a well-balanced asset mix, with a current average weighting of 34% in US dollar-based assets, while the remaining 66% is invested in Namibian dollars. (1 NAD = 1 ZAR) based assets. Trustco is backed by a wide range of co-investors, including 3,610 from Namibia, 1,443 from abroad, and 94 from institutional entities.

About Namibia:

Namibia is a country in southern Africa with a population of approximately 3 million and a GDP per capita of US$5,031 in 2022. The country’s economy expanded by 4.2% in 2023 and is projected to grow by 3.7% in 2024, after a recovery of 5.3% in 2022 due to the COVID-19 pandemic. With its wealth of natural resources, business-friendly environment, and increasingly skilled workforce, Namibia offers attractive investment prospects in all sectors.

Trustco+ Group Announces Major Transaction with Founding Family

Trustco+ Group, a diversified investment company based in Namibia, has announced a significant transaction totaling N$4.4 billion (approximately $235 million) with its founding family, the Bock family. The transaction involves the sale of a 25% stake in Trustco+ Group’s banking and financial services subsidiary, Trustco Bank, to the Bock family. The Bock family, which currently holds a 58.2% stake in Trustco+ Group, will now own a 83.2% stake in Trustco Bank. The proceeds from the transaction will be used by Trustco+ Group to reduce its debt and invest in new growth opportunities. The company said that the transaction is part of its strategy to align the interests of its shareholders and strengthen its financial position. “This transaction is a significant milestone in the history of our company,” said Quinton van Rooyen, Chief Executive Officer of Trustco+ Group. “It demonstrates our commitment to creating long-term value for our shareholders and our confidence in the future of Trustco Bank.” The transaction is subject to regulatory approvals and is expected to be completed within the next six months. Trustco+ Group is a diversified investment company with operations in banking, financial services, insurance, property, and technology. The company has a presence in Namibia, Botswana, South Africa, and the United Kingdom.