GIPF to buy 25% stake in Bank Windhoek group

THE Government Institutions Pension Fund is set to become a major shareholder of the Bank Windhoek holding company, Capricorn Investment Group, in a transaction worth more than N$2 billion.

The GIPF has made a successful bid to acquire 25 percent of the issued ordinary shares of Capricorn Investment Group (CIG; previously Bank Windhoek Holdings), Capricorn Investment Holdings, CIG, and the GIPF announced in a joint media statement today after the signing ceremony yesterday.

The transaction is still subject to the necessary regulatory approvals.

If approved, the transaction would see the GIPF becoming the second largest shareholder in CIG, with a 26% stake in the company.

In terms of the agreement, the GIPF would acquire a 15,5% interest in CIG from Capricorn Investment Holdings, and a further shareholding of 9,5% from Namibia Strategic Investments, at a total cost in excess of N$2 billion, it was announced.

Following the transaction, Capricorn Investment Holdings’ shareholding in CIG will decrease from 56% to 40,5%.

CIG has interests in banking, insurance, asset management and microfinance in Namibia, Botswana and Zambia.

Bank Windhoek – Namibia’s largest locally owned bank and the second largest commercial bank in the country – is CIG’s flagship brand.

Capricorn Investment Group also has equity in Bank Gaborone in Botswana and Cavmont Bank in Zambia.

According to Bank Windhoek’s most recent financial results, the bank had assets with a total value of N$31,9 billion and liabilities totalling N$27,8 billion at the end of December 2016.

The bank recorded an operating profit of N$1,09 billion over the year to the end of June 2016, and a pre-tax profit of N$577,6 million over the six months to the end of December 2016.

Bank Windhoek reported an after-tax profit of N$762,9 million over the year to the end of June 2016, and an after-tax profit of N$398,6 million over the six months to the end of December 2016.

The bank’s board of directors declared an interim dividend of N$136 million on 21 February this year.

CIG’s share price stood at N$17,57 on the Namibian Stock Exchange yesterday.

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