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Capricorn Group acquires control shareholding in Botswana and Zambia units

09 December 2016 – Financial services group, Capricorn Investment Group Limited (CGP) recently announced to their shareholders that it will acquire the controlling issued share capital of Capricorn Investment Holdings Botswana (CIHB) and Cavmont Capital Holdings Zambia (CCHZ).

In terms of the agreement, the group will acquire 65% of the issued share capital of Capricorn Investment Holdings (Botswana) Limited, which owns 100% of the share capital of Bank Gaborone, and 97.9% of Cavmont Capital Holdings Zambia Plc, which owns 100% of the share capital of Cavmont Bank.

Capricorn Investment Holdings Limited (CIH), the ultimate holding company of CGP, holds shareholdings of 80.6% and 73% in the issued ordinary share capital of the Botswana and Zambia entitites, as at the effective date.

The 15.6% shareholding in CIHB retained by CIH is to honour a commitment to a local Botswana investor. CGP will, in addition to the 73% acquired from CIH in CCHZ, acquire an additional 24.9% in CCHZ on the same terms from other minority shareholders.

The transaction is seen as a key enabler to achieve CGP’s aim to diversify the business interests of the group and expand its footprint outside Namibia.

This transaction will also strengthen the already close collaboration and alignment between the entities in the three countries through the shared interest held by CIH. The banks are already aligned to the group risk methodologies, policies and technology platforms and have also adopted the “As One” strategic initiatives of the group.

Bank Gaborone Limited is a relatively new bank in Botswana that opened its first branch in September 2006. The bank has a market share of approximately 6% with 8 branches, 3 agencies and 9 BG Finance (micro finance) branches. Bank Gaborone was recently recognised by a KPMG survey as the most customer focused bank in Botswana.

Cavmont Bank Limited was established on 1 January 2004, following a merger between Cavmont Merchant Bank Limited (incorporated October 1992) and New Capital Bank Plc (incorporated June 1992). The bank was historically a savings bank but was subsequently repositioned as a full scope retail and commercial bank. The bank has a network of 17 branches and 3 agencies in 6 of the 10 provinces in Zambia. Cavmont Bank received the accolades of Best Retail Bank Zambia and Best Customer Service Bank Zambia by Global Banking and Finance Review for 2016.

CGP will purchase the shares of CIHB and CCHZ from the vendors for a consideration of P240.9 million and K81.0 million, respectively. Based on the exchange rates at 30 November 2016 of P0.7676 and K0.7053, the purchase consideration amounts to N$428.8 million.

About The Author

Musa Carter

Musa Carter is a long-standing freelance contributor to the editorial team and also an active reporter. He gathers and verifies factual information regarding stories through interviews, observation and research. For the digital Economist, he promotes targeted content through various social networking sites such as the Economist facebook page (/Nameconomist/) and Twitter.

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

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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.