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.”