TRUSTCO Group Holdings Limited this week reported it is concluding pivotal transactions with key shareholders that underscore confidence in Namibia’s positive economic prospects and Trustco’s capabilities to channel investment into high-growth areas.
According to a Trustco statement, the group and a United States fund, Riskowitz Value Fund LP (RVF), is expected to enter an option to make a cash investment of up to N$950 million into Trustco, entrenching RVF as a key anchor foreign investor.
“The capital will provide Trustco unparalleled financial muscle to capitalise on new opportunities and strengthen existing investments in a Namibian economy that is poised for rapid growth,” Trustco stated.
In addition, Next Capital (Pty) Ltd and entities affiliated with Trustco’s founder Quinton van Rooyen, are said to have made an offer to convert N$1.48 billion of debt into new ordinary Trustco shares.
According to the statement, this debt transformation into equity is a proactive approach to debt management that unlocks free cash flows for future investment, frees up capital for dividends in the medium term, and more than doubles Trustco’s net asset value. Trustco is confident the conversion option will optimise its capital structure and align the interests of founder shareholders with minority holders and key debtholders.
“With our country’s wealth of natural resources, stable governance and strategic location, Namibia’s economic future is filled with promise,” said Trustco’s deputy CEO, Quinton van Rooyen.
“These shareholder actions allow Trustco to convert national potential into investment opportunities, shareholder returns, and reinforces our progressive trajectory and diversification strategy. These moves emphasise Trustco’s dedication to creating sustainable value for our shareholders and solidifying our position in the market. We will channel this investment into innovations that empower more co-investors to secure their financial futures and reward shareholders and Namibians in general”.
“These transactions represent an opportunity to align our interests and leverage Trustco’s expansion. They signify shareholder confidence in Trustco’s vision, high value assets and potential for sustained growth across its diverse investment portfolio. RVF is committed to supporting dynamic enterprises in emerging markets and leveraging opportunities that drive mutual success,” said RVF’s Sean Riskowitz.
The Trustco statement continued that the transactions emphasise the vibrancy of the domestic investment landscape and that the group stands energised to deliver sustained value creation to shareholders by channelling capital into areas that will reshape the national economic landscape for the future.
“Most importantly, these actions translate into direct value for investors. The capital injection fortifies Trustco’s balance sheet and enables expansion that will drive portfolio growth, share buybacks and dividends over time,” Trustco stated.
In addition, Trustco said it is in the process of concluding acquisition of an additional 11.35% stake in Legal Shield Holdings Ltd to expand its investments in Namibia’s insurance and real estate sectors. Trustco currently holds 80% in Legal Shield Holdings and aims to increase its stake to 91.35%. When concluded the transaction will enable Trustco greater exposure to strong growth potential in key industries.
According to the World Bank, Namibia’s projected growth rate is higher than the average for sub-Saharan Africa (3.3%), upper-middle-income countries (2.9%), and the world (3%) and positions Namibia as one of the fastest growing countries in the region. With its wealth of natural resources, pro-business environment and increasingly skilled workforce, Namibia offers attractive investment prospects across all sectors.