CHAMWE KAIRA
Capricorn Group Limited has made a successful binding offer to acquire a majority interest in Centrafin (Pty) Ltd, a South African specialist equipment rental and asset financing business, from Fonzosys (Pty) Ltd, part of the Alviva Group of companies.
The proposed transaction is a significant milestone in Capricorn Group’s growth and diversification strategy.
It supports the group’s ambition to broaden its revenue base beyond its established markets in Namibia and Botswana through strategic and material investments in South Africa.
The parties have agreed to an enterprise value of R788.3 million for Centrafin, which is subject to the finalisation of the audited financial results.
Under the proposed transaction structure and given its goals of working with Fonzosys to increase its regional financial services presence, Capricorn Group will acquire 81.6% initially with the option to acquire a 100% stake in Centrafin over a five-year period.
The signing follows due diligence work by Capricorn Group across financial, risk, legal, tax, operational, brand, reputation, human capital and regulatory areas of Centrafin.
David Nuyoma, group chief executive officer of Capricorn Group, described the proposed acquisition as an important next step in the group’s evolution:
“This is an exciting and significant moment in the growth journey of Capricorn Group. Our ambition is to continue building a stronger, more diversified and increasingly regional financial services group, and the proposed acquisition of Centrafin represents a deliberate and meaningful step forward in that journey,” said Nuyoma.
“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. 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.”
Centrafin brings an established position in South Africa’s specialist equipment rental and asset financing market.
The strategic rationale is to combine Centrafin’s strengths with the broader capabilities, resources and financial services experience of Capricorn Group.
Jenny Gill, managing director of Centrafin, welcomed the proposed transaction, highlighting the strategic alignment between the two organisations:
“While this represents an exciting growth opportunity for the Capricorn Group, it is equally significant for Centrafin as we embark on the next phase of our journey. 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.”
The acceptance of the binding offer does not constitute the completion of the proposed transaction.
Implementation remains subject to the negotiation and execution of definitive transaction agreements, approvals from the Bank of Namibia, the South African Competition Commission and compliance with applicable Namibia Securities Exchange requirements.
There are also certain conditions precedent which must be fulfilled or waived by 31 January 2027, or such later date as the parties may agree in writing.
