CHAMWE KAIRA
Trustco Group Holdings Limited (Trustco) has announced updates to its planned purchase of additional shares in Legal Shield Holdings Limited (LSH), the company announced.
Originally announced on 23 April, the transaction involves Trustco acquiring an extra 11.35% stake in LSH from Riskowitz Value Fund LP (RVF).
This will increase Trustco’s total ownership of LSH to 91.35%.
The transaction, valued at N$468 million (US$27 million), will be completed by issuing new Trustco shares to RVF.
The transaction is expected to close by 31 December.
The acquisition includes valuable assets such as Trustco Insurance Limited and Trustco Life Limited, as well as 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 (6 112 acres) of prime land across Namibia. Since 2011, this real estate has generated more than N$934 million (US$53 million) in cash.
The company said 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.
Quinton Z van Rooyen, deputy CEO of Trustco, commented on the transaction, stating: “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.”
Van Rooyen noted an increasing interest from international investors, particularly major players in the petroleum and green hydrogen sectors from the US 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 has submitted a circular detailing the transaction to the Johannesburg Stock Exchange (JSE) for review.
Once approved, this comprehensive document will be distributed to all shareholders, providing full details on the proposed acquisition.
Trustco manages a diverse portfolio of investments spanning the insurance, real estate, non-deposit-taking financial services, microfinance, education, and mining sectors.
