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Trustco diamonds slip at Competition Commission

In the same week that Trustco Group International declared revenues exceeding one billion Namibia Dollar, the prospective diamond miner also had to concede its diamond target have not been served before the Competition Commission yet.

But the group confirmed to the Economist this week, it is hard at work to take ownership of a small-scale diamond mining operation 600 kilometres north of Swakopmund.
Speaking to Trustco Group International spokesperson for Investor Relations, Margot Gebhardt, the Economist established that Trustco is working on getting the approval of its minority shareholders before lodging an application with the Namibia Competition Commission (NaCC).
“The merger application will be lodged with the NaCC in the event that the minority shareholders approve the transaction. There are many regulatory hurdles still to jump before the transaction is completed.”
According to Gebhardt, no funding model is in place for the purchase of the diamond mine. “There is no funding for the acquisition, the consideration will be paid in Trustco shares over time as profits realise and the resource grows. [Additionally], the value of the transaction can not be determined at present as the value of the resources will be established over the next 9 years.”
Releasing its results this week, Trustco reported that its revenue had surged to N$1 billion for the first time ever. The group reported profit for the financial year of N$303 million while Basic Earnings Per Share was 43.59 cents and Earnings Per Share was 43.29 cents for the period under review. A headline in the Trustco-owned publication Informante read “Our Time Has Come” in response to the sterling performance by the Namibian insurer, banker and micro-lender.
“It is a great testimonial for Namibia’s political and investment climate since independence and confirms the growing confidence in successive governments and institutions. I am especially satisfied in the role Trustco could and will continue to play in wealth creation through entrepreneurship,” said Trustco Managing Director, Quinton van Rooyen through its Informante mouthpiece.”

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Following reverse listing, public can now acquire shareholding in Paratus Namibia


20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.