Trustco Group Holdings plan to acquire an additional 11.35% stake in Legal Shield Holdings, expected to be completed by the end of this year. In a media statement issued this week, Trustco stated the proposed transaction, valued at close to half-a-billion Namibia dollars, will increase its stake in the legal insurance entity to over 91%.
Trustco initially announced the deal in April this year, where it intends to acquire an additional 11.35% stake in Legal Shield Holdings from Riskowitz Value Fund LP (RVF). The transaction, expected to close by 31 December 2024, is valued at N$468 million, and will be completed by issuing new Trustco shares to RVF.
“The acquisition includes valuable assets such as Trustco Insurance Limited, Trustco Life Limited, and a large real estate portfolio that includes developments such as Elisenheim Lifestyle Estate, Lafrenz Industrial Park and Herboths. This portfolio consists of 2 473 sellable hectares of prime land across Namibia. Since 2011, this real estate has generated more than N$934 million in cash,” reads a Trustco statement.
It added that the extensive land bank offers the opportunity to develop more than 26 000 mixed-use plots.
“Over the past decade, the company has successfully serviced over 1 106 plots across its developments. With a development pipeline extending for the next 25 years, Trustco is well-positioned to address Namibia’s severe shortage of serviced land for residential, commercial and industrial use,” the statement added.
“This acquisition aligns well with our growth strategy, and allows us to take advantage of expected capital growth, improved macroeconomic liquidity, and increased buyer demand in Namibia’s real estate market. By expanding our property portfolio, we’re set to benefit from the country’s recovering property market following the pandemic,” stated Quinton van Rooyen jnr., deputy chief executive officer of Trustco.
Van Rooyen further emphasised the increasing interest from international investors, particularly major players in the petroleum and green hydrogen sectors from the United States and Europe.
“The growing presence of these industry titans in Namibia strengthens our confidence, and reaffirms our strategy to expand our real estate holdings. Their investments signal strong prospects for the Namibian economy, creating an ideal environment for Trustco to capitalise on these opportunities,” he added.
Trustco stated it submitted a circular detailing the transaction to the Johannesburg Stock Exchange (JSE) for review. Once approved, this comprehensive document is expected to be distributed to all shareholders, providing full details on the proposed acquisition.