Trustco founder injects equity into business
Trustco Group Holdings Limited this week announced an agreement to convert N$4.4 billion of debt into equity, paving the way for a planned US$100 million capital raise in the US markets. The agreement is expected to increase Trustco's net asset value by approximately N$1.5 billion (US$ 79 million).
“This recapitalisation is a crucial step towards 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.
According to van Rooyen, Trustco will be well-positioned to attract further strategic investors and create long-term value for our investors after freeing up its balance sheet.
The conversion is also a significant statement of support from the founding family, demonstrating confidence in Trustco's growth plans and strategy. In terms of the conversion agreement, the debt owed to Next Capital and Dr Quinton van Rooyen will be exchanged for new ordinary Trustco shares at a price of N$1.17 (US$ 0.06) per share, a 350% premium over Trustco’s 90-Day Volume Weighted Average Price.
This pricing aligns with the company's audited net asset value per share as of August 31, 2023, and is contingent on obtaining shareholder and regulatory clearances, which will include an independent fairness opinion to ensure the transaction's execution aligns with best governance practices.
The influx of capital from two long-standing shareholders, including the founding family, underscores confidence in the company's approach. Trustco is also increasing its stake 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 a N$468 million (US$25 million) equity transaction.
“This recapitalisation is a crucial step towards 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.
According to van Rooyen, Trustco will be well-positioned to attract further strategic investors and create long-term value for our investors after freeing up its balance sheet.
The conversion is also a significant statement of support from the founding family, demonstrating confidence in Trustco's growth plans and strategy. In terms of the conversion agreement, the debt owed to Next Capital and Dr Quinton van Rooyen will be exchanged for new ordinary Trustco shares at a price of N$1.17 (US$ 0.06) per share, a 350% premium over Trustco’s 90-Day Volume Weighted Average Price.
This pricing aligns with the company's audited net asset value per share as of August 31, 2023, and is contingent on obtaining shareholder and regulatory clearances, which will include an independent fairness opinion to ensure the transaction's execution aligns with best governance practices.
The influx of capital from two long-standing shareholders, including the founding family, underscores confidence in the company's approach. Trustco is also increasing its stake 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 a N$468 million (US$25 million) equity transaction.
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