Trusco Group Holdings has offered an equity investment of up to N$950 million to United States (US) fund manager Riskowitz Value Fund LP (RVF).
If RVF, a long-time Trustco collaborator, chooses to exercise this option, the group would solidify its role as a key foreign investor in the company.
This injection of funds is expected to accelerate Trustco’s ongoing value creation initiatives, including share buybacks and the distribution of dividends.
“These shareholder actions allow Trustco to convert national potential into investment opportunities and shareholder returns, and reinforces our progressive trajectory and diversification strategy,” Trustco deputy chief executive Quinton van Rooyen says.
He says Trustco will channel this investment into innovations that empower more co-investors to secure their financial futures and reward shareholders and Namibians in general.
Founding and managing member of RVF Sean Riskowitz says the fund manager is dedicated to supporting dynamic enterprises in emerging markets and capitalising on opportunities that lead to shared success.
He says these transactions present a chance to align RVF’s interests with Trustco’s expansion.
“They signify shareholder confidence in Trustco’s vision, high-value assets and potential for sustained growth across its diverse investment portfolio,” Riskowitz says.
This move is part of Trustco’s plan to raise N$2,4 billion from shareholders, which also includes changing a large debt into shares.
Trustco says entities it owes money to, including Next Capital (Pty) Ltd and affiliated entities associated with Trustco’s founder, Quinton van Rooyen, intend to convert N$1,48 billion of debt into new shares in Trustco.
This move is meant to make Trustco’s finances better and free up money for future investments.
Meanwhile, Trustco has announced its ongoing acquisition of an additional 11,35% stake in Legal Shield Holdings Ltd, which houses the insurance and valuable property portfolios.
Currently holding 80%, Trustco aims to increase its stake to 91,35%.
The successful completion of the transactions could significantly impact the price of the company’s securities.
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