Banner Left
Banner Right

Trustco announces plans to delist from three stock exchanges a few day after executive died in a diamond heist

TRUSTCO CHIEF … Trustco group’s chief executive, Quinton van Rooyen.

Trustco Group Holdings Limited is considering delisting from the Johannesburg Stock Exchange (JSE), the Namibian Stock Exchange, as well as the OTCQX Market in the United States.

This comes a few days after the company announced that its chief operating officer for the internal and forensics investigations unit, Max Endjala, had been killed in a robbery at the Namib Desert Diamond premises in Windhoek on 18 January.

“For nearly two decades, Trustco maintained its listing in southern Africa, serving a predominantly local shareholder base,” said Quinton van Rooyen, the group’s chief executive, in a statement issued yesterday.

“However, we’ve witnessed a significant shift in our investor demographics, with a substantial portion of our shareholders now based in the United States. This natural evolution, combined with our planned Nasdaq listing, positions us to better serve our investors and enhance shareholder value,” he said.

The proposed delisting process will include the appointment of an independent expert to provide an updated fairness opinion as required by JSE listings requirements.

The majority family-owned company with investments in insurance, education, real estate, mining, commercial banking, and microfinance, has also requested an immediate suspension of share trading due to several factors affecting market information symmetry.

Trustco says the ongoing engagement with the JSE regarding the delisting process is presenting challenges in coordinating with shareholders across different time zones and jurisdictions, creating potential information gaps until the formal delisting announcement and offers are made.

Additionally, the company is undergoing three simultaneous audits – a Public Company Accounting Oversight Board audit by US auditors for Nasdaq requirements, along with South African and Namibian audits – each with different jurisdictional requirements and reporting periods.

“This situation has resulted in varying levels of information being submitted to different regulators for different purposes,” says the statement.

These jurisdictional differences will affect both stakeholder engagement requirements and the preparation of the fairness opinion required for the delisting offer.

Furthermore, the recent cautionary announcement on Sens could impact share price trading and market volatility, potentially affecting the fairness opinion.

The requested suspension aims to protect shareholder value until the fairness opinion is completed and the formal announcement is made, the company explained.

“A comprehensive formal offer detailing the proposed delisting will be communicated to shareholders.

“This will include, but will not be limited to, how previously announced transactions and corporate actions will be affected, details regarding the planned Nasdaq direct listing announced on 21 November 2024, and all other information required by the listings requirements and Namibian company law,” says Trustco in the statement.

The company has been struggling with financial reporting discrepancies and regulatory non-compliance.

The JSE previously found that Trustco had failed to comply with International Financial Reporting Standards.

– email: matthew@namibian.com.na.

Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!

Latest News